05.4 Building and internationalising away from home There are huge potential cost benefits by placing offices in locations outside the primary hub, though the differences vary by country. In the U.K. and France, founders choosing to build outside of London and Paris stand to benefit from hugely reduced fees on the relative cost of office space. In Germany, on the other hand, the difference in the costs of office space outside Berlin is far less pronounced. There are huge potential cost bene�ts by locating o�ces in locationsT ohuetrsei adere t hheu pgeri pmoatreyn htiuabl c, tohsotu bgehn teh�ets by locating o�ces in locations outside the primary hub, though the Cost of prime rent ($ per square metre per year) for office space differences vary by country. In the UK and Paris, founders choosing tod bifufeilrde onuctess videa oryf b Lyo cnoduonnt aryn.d I Pn tahreis U sKta anndd t Poaris, founders choosing to build outside of London and Paris stand to by city in selected countries, 2Q 2018 bene�t from hugely reduced fees on the relative cost of o�ce space.b Ienn Gee�rtm faronmy, o hnu tgheely o rethdeurc headn fde,e tsh oen the relative cost of o�ce space. In Germany, on the other hand, the difference in the costs of o�ce space outside Berlin is far less pronoudnifcfeerde.nce in the costs of o�ce space outside Berlin is far less pronounced. DATASET: FRANCE DATASET: GERMANY Cost of prime rent ($ per square metre perParis (Ile-de-France) Cost of prime rent ($ per square metre pe$r995 Frankfurt am Main $562 year) for oíce space by city in selected year) for oíce space by city in selected coun Marseille co$u3n75 tries, 2Q 2018 tries, 2Q 2018 Munich $520 DATASET: FRANCE DATASET: GERMANY Lyon $351 LEGEND LEGEND Berlin $443 Prime Rent ($ per square metre per year) Nice $269 Prime Rent ($ per square metre per year) Hamburg $379 Toulouse $258 Dusseldorf $379 Lille $258 Bordeaux $234 Cologne $309 0 200 400 600 800 1,000 0 100 200 300 400 500 600 There are huge potential cost bene�ts by locating o�ces in locationsT oheurtesi adree t hhueg per pimoateryn htiuabl c, tohsot ubgehn teh�ets by locating o�ces in locations outside the primary hub, though the Prime Rent ($ per square metre per year) Prime Rent ($ per square metre per year) There are huge potential cost bene�ts by locating o�ces in locations outside the primary hub, though the differences vary by country. In the UK and Paris, founders choosing tod biffueirlde oncuetss vidaer oyf b Lyo cnoduonnt aryn. Idn P tahreis U sKta anndd t Poaris, founders choosing to build outside of London and Paris stand to differences vary by country. In the UK and Paris, founders choosing to build outside of London and Paris stand to bene�t from hugely reduced fees on the relative cost of o�ce space.b Ienn Gee�rtm fraonmy, h oung tehley o retdhuecr heda fnede, tsh oen the relative cost of o�ce space. In Germany, on the other hand, the bene�t from hugely reduced fees on the relative cost of o�ce space. In Germany, on the other hand, the Source: Source: difference in the costs of o�ce space outside Berlin is far less pronoduinffceerde.nce in the costs of o�ce space outside Berlin is far less pronounced. DATASET: SPAIN DATASET: UNITED KINGDOM difference in the costs of o�ce space outside Berlin is far less pronounced. Cost of prime rent ($ per square metre per Cost of prime rent ($ per square metre per Cost of prime rent ($ per square metre perMadrid $453 London (Central) $1,496 year) for oíce space by city in selectedLondon (Central) year) for oíce space by city in selected $1,496 year) for oíce space by city in selected coun coun tries, 2Q 2018 tries, 2Q 2018 coun tries, 2Q 2018 Barcelona $344 Manchester $513 Manchester $513 DATASET: SPAIN DATASET: UNITED KINGDOM DATASET: UNITED KINGDOM LEGEND LEGEND LEGEND Malaga $485$169 Edinburgh $485 Edinburgh Prime Rent ($ per square metre per year) Prime Rent ($ per square metre per year) Prime Rent ($ per square metre per year) Zaragoza $158 Birmingham $470 Birmingham $470 There are huge potential cost bene�ts by locating o�ces in locations outside the primary hub, though the Valencia $152 Glasgow $463 Glasgow $463 differences vary by country. In the UK and Paris, founders choosing to build outside of London and Paris stand to bene�t from hugely reduced fees on the relative cost of o�ce space. In Germany, on the other hand, the Palma de Mallorca $140 Bristol $463 Bristol $463 difference in the costs of o�ce space outside Berlin is far less pronounced. 0 100 200 300 400 500 0 250 500 750 1,000 1,250 1,500 0 250 500 750 1,000 1,250 1,500 Prime Rent ($ per square metre per year) Prime Rent ($ per square metre per year) Prime Rent ($ per square metre per year) Cost of prime rent ($ per square metre per London (Central) $1,496 year) for oíce space by city in selected coun Source: tries, 2Q 2018 Source: Source: Manchester $513 DATASET: UNITED KINGDOM LEGEND Edinburgh $485 Prime Rent ($ per square metre per year) Birmingham $470 Europe’s leading hubs have many advantages, but OFFICE SPACE COSTS BY CITY $463 they’re also far more expensive to build from Glasgow Difference in cost per square metre of Bristol $463 prime office space in Paris (Ile-de-Fance) 0 250 500 750 1,000 1,250 1,500 compared to in Marseille, the next most 2.7x expensive French city Prime Rent ($ per square metre per year) Source: & 78 In Partnership with www.thestateofeuropeantech.com