Published on and written by Cyril Jarnias
Luxembourg, with its dynamic economy and strategic position at the heart of Europe, attracts numerous entrepreneurs eager to establish their businesses there. Whether you’re looking for commercial space, an office, or a warehouse, this guide will help you navigate the process of finding and renting professional premises that meet your needs in the Grand Duchy.
The Quest for the Perfect Space: Winning Strategies
Finding the ideal premises for your business in Luxembourg requires a methodical and well-informed approach. Here are some effective strategies to successfully conduct your search:
Define your needs precisely: Before starting your search, create a detailed list of your requirements regarding square footage, location, amenities, and budget. This crucial step will help you more effectively target listings that match your criteria.
Leverage online resources: Specialized real estate platforms like atHome.lu or Immotop.lu offer numerous listings of professional premises for rent. Use search filters to refine your results and save time.
Engage a local real estate agent: Real estate professionals have in-depth knowledge of the Luxembourg market and can save you valuable time by presenting properties that match your criteria. Additionally, they can advise you on the neighborhoods best suited to your business.
Explore business parks: Luxembourg has several business parks and industrial zones offering spaces suitable for businesses. Inquire with local authorities or economic development agencies about opportunities in these areas.
Networking and word-of-mouth: Don’t hesitate to activate your professional network and participate in business events in Luxembourg. Personal recommendations can often lead to interesting opportunities that aren’t necessarily publicly advertised.
Good to know:
The House of Entrepreneurship, an initiative of the Luxembourg Chamber of Commerce, offers personalized support to entrepreneurs, including assistance with finding premises. Don’t hesitate to contact them to benefit from their expertise and network.
Key Players in Luxembourg’s Commercial Real Estate
To optimize your search for professional premises in Luxembourg, it’s essential to know the main players in the commercial real estate market. Here’s a selection of reputable agencies specializing in leasing commercial space, offices, and warehouses:
- INOWAI: One of Luxembourg’s largest real estate agencies, offering a wide range of services for businesses.
- JLL Luxembourg: Local subsidiary of the global real estate giant, specializing in commercial real estate.
- CBRE Luxembourg: Another major international player, offering real estate solutions for all types of businesses.
- Cushman & Wakefield Luxembourg: Recognized expertise in commercial real estate consulting.
- Property Partners: Local agency offering personalized services for finding professional premises.
These agencies have extensive property portfolios and deep knowledge of the Luxembourg market. They can assist you in all stages of your search, from property selection to lease negotiation.
Benefits of working with a specialized agency: – Access to a wide range of properties, including off-market listings – Expert advice on market trends and current prices – Assistance in negotiating lease terms – In-depth knowledge of local regulations
Remember that the Luxembourg Real Estate Chamber brings together many real estate professionals. Consulting their member list can help you identify other reliable agencies specializing in commercial real estate.
Good to know:
Some agencies offer customized “property finding” services, particularly useful if you have specific needs or lack time to conduct the search yourself.
Rental Application: Essential Documents
Renting professional premises in Luxembourg requires preparing a strong application. Here are the documents typically required by landlords or real estate agencies:
- Recent extract from the Trade and Companies Register (RCS)
- Company statutes
- Balance sheets and income statements for the last two fiscal years
- Business establishment authorization
- ID of the manager or legal representative
- Bank statements from recent months
- Detailed business plan
- Financial projections
- Proof of equity or financing
- ID of the future manager
- CV and professional references
- Professional liability insurance certificate
- Bank references
- Additional guarantees (personal guarantee, bank guarantee)
It’s crucial to prepare a complete and well-presented application to maximize your chances of securing the desired premises. Landlords in Luxembourg are generally very attentive to the financial strength and reliability of potential tenants.
Luxembourg specificities: In Luxembourg, the business establishment authorization is a key document for any company wishing to engage in commercial, artisanal, or industrial activity. Make sure you’ve initiated the process to obtain it from the General Directorate for SMEs and Entrepreneurship of the Ministry of the Economy before starting your search for premises.
Good to know:
The House of Entrepreneurship can help you prepare your rental application and understand the specific requirements of the Luxembourg market. Their expertise can prove invaluable, especially if you’re new to the country.
Rental Budget: How Much to Budget for Your Professional Space?
The cost of renting professional premises in Luxembourg varies considerably depending on several factors, particularly location, size, and quality of facilities. Here’s an overview of price ranges to expect:
Offices: – Luxembourg city center: €35 to €50/m²/month – Outlying districts: €25 to €35/m²/month – Business parks: €18 to €25/m²/month
Commercial premises: – Prime locations (Grand-Rue, Avenue de la Gare): €100 to €150/m²/month – Secondary shopping streets: €50 to €80/m²/month – Shopping centers: €60 to €100/m²/month
Warehouses and industrial premises: – Logistics zones: €5 to €8/m²/month – Urban storage spaces: €10 to €15/m²/month
It’s important to note that these prices are indicative and may vary depending on the quality of finishes, accessibility, and included services. Additionally, don’t forget to account for maintenance charges, which can represent an additional €2 to €4/m²/month.
Other costs to consider: – Security deposit: typically 3 months’ rent – Agency fees: often equivalent to 1 month’s rent + VAT – Insurance: professional liability and multi-risk – Potential fit-out and renovation work
Market trends: The Luxembourg commercial real estate market remains dynamic, with sustained demand, particularly in the office sector. Prices tend to stabilize in some areas but remain high in prime locations. The trend is toward flexible spaces and shorter lease terms, meeting businesses’ need for agility.
Good to know:
Some Luxembourg municipalities offer coworking spaces or business incubators at advantageous rates for young companies. These solutions can be interesting for starting your business at lower cost while benefiting from a professional environment.
Attractive Cities for Establishing Your Business at Lower Cost
Although Luxembourg City remains the country’s economic heart, other locations offer interesting opportunities for businesses seeking to establish themselves at more affordable costs. Here are some cities and areas to consider:
Esch-sur-Alzette: The country’s second-largest city, Esch-sur-Alzette is experiencing economic renewal thanks to the development of Belval, a former steel site converted into an innovation hub. Rents there are generally 30 to 40% lower than in Luxembourg City, while offering excellent connectivity.
Differdange: This city in the south of the country benefits from significant investments in urban renewal and economic development. It offers commercial and industrial spaces at competitive prices, while being well-served by transportation.
Dudelange: Located on the French border, Dudelange is attracting more and more businesses thanks to its modern business parks and attractive rents. The city is particularly interesting for companies with cross-border activities.
Ettelbruck: In the north of the country, Ettelbruck positions itself as an important regional center. Businesses can find premises at interesting prices while benefiting from a strategic position to serve northern Luxembourg and the bordering German and Belgian regions.
Regional business zones: The Luxembourg government has developed several regional business zones offering modern infrastructure at competitive prices. Among the most notable: – Syrdall Business Park (east of the country) – Hosingen Regional Economic Activity Zone (north) – Klengbousbierg Business Park in Mamer (west)
These alternative locations offer several advantages: – Reduced rents and operating costs – Better space availability – Proximity to local workforce – Support from local authorities for business establishment
Factors to consider: – Accessibility and public transportation – Proximity to customers and suppliers – Local employment pool – Quality of digital infrastructure
Good to know:
The Luxembourg Ministry of the Economy offers an online tool, “Geoporter,” which allows you to visualize the country’s economic activity zones and their availability. It’s a valuable resource for identifying establishment opportunities outside the capital.
Support and Assistance for Renting Professional Premises
Luxembourg offers various forms of support to businesses, including for renting professional premises. Although direct rental assistance is limited, several programs and initiatives can indirectly facilitate your establishment:
Investment aid: The Ministry of the Economy offers investment aid that can cover part of the costs related to acquiring or fitting out professional premises. This aid can reach up to 20% of eligible costs for SMEs.
Incubators and business nurseries: – Technoport: Offers office space and laboratories at preferential rates for innovative start-ups. – Luxembourg City Incubator: Provides reduced-cost workspace in the heart of the capital. – House of Startups: Brings together several incubators offering flexible and affordable workspace.
Municipal support: Some Luxembourg municipalities offer local initiatives to attract businesses: – Provision of premises at advantageous rates – Creation of municipal coworking spaces – Personalized support for establishment
Kirchberg Plateau Development Fund: This public fund offers modern office space in the Kirchberg business district, sometimes under advantageous conditions for certain types of businesses or activities.
House of Entrepreneurship one-stop shop: Although not providing direct financial assistance, this Chamber of Commerce service offers valuable support for: – Identifying available aid – Connecting with landlords or agencies – Advising on the best establishment options
Digitalization aid: The “Fit 4 Digital” program can indirectly help reduce premises-related costs by subsidizing the implementation of digital solutions, enabling, for example, remote work or space optimization.
Rental guarantees: The National Credit and Investment Corporation (SNCI) can, in some cases, provide guarantees to facilitate the rental of professional premises, thereby reducing the initial financial burden for businesses.
Good to know:
The Guichet.lu portal, the official website of the Luxembourg administration, centralizes all information on aid and procedures for businesses. It’s an excellent starting point for exploring available support for your establishment project.
Conclusion: Your Successful Establishment in Luxembourg
Finding the ideal premises for your business in Luxembourg is a crucial step in your development. Although the Luxembourg real estate market is dynamic and sometimes expensive, it offers numerous opportunities for businesses of all sizes and sectors.
The key to success lies in a methodical approach: – Clearly define your needs and budget – Explore different geographical options, including outside the capital – Engage local professionals to benefit from their expertise – Prepare a strong application to convince landlords – Inquire about available aid and support
Remember that establishing your business in Luxembourg goes beyond simply finding premises. It’s an opportunity to position yourself in an international market, at the heart of Europe, in a stable and innovative economic environment.
Luxembourg continues to invest in its economic attractiveness, with ambitious infrastructure projects and constant support for innovation. By choosing your location wisely and leveraging available resources, you’ll lay solid foundations for your business’s success in the Grand Duchy.
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
