Pedestrian street or industrial wasteland: Where to plant your gallery’s flag?

01Rent isn’t the only price to pay

A square meter in the Marais costs between €1,200 and €2,500 per year, compared to €300 to €800 in the 19th arrondissement. At first glance, the math seems simple: the more expensive it is, the more visible you are. Yet galleries that thrive in less central areas share one trait: they turn an apparent disadvantage into an asset. Galerie Chantal Crousel, located in the 3rd arrondissement since 1980, chose a space without a street-facing window. "We bet on an audience that comes for the works, not to stroll," explains its team. Conversely, Galerie Templon, which opened a 1,000-square-meter space in the Marais in 2013, accepts high rent by capitalizing on tourist foot traffic—30 million visitors pass through Paris each year, some of whom inevitably end up in front of its walls.

The true cost of a location extends beyond rent. In historic districts like the Marais or Saint-Germain-des-Prés, listed buildings come with constraints: load-bearing walls can’t be pierced, original woodwork must be restored, and illuminated signs are banned. In Berlin, the former industrial workshops of Kreuzberg often hide asbestos or lead problems, with remediation costs reaching up to €100,000. Security expenses add up too: a gallery in the Marais spends an average of €15,000 per year on alarm systems and insurance, compared to €5,000 for a space on the outskirts.

02The geography of collectors: where are the buyers?

Collectors aren’t evenly distributed across space. In Paris, institutional buyers (museums, foundations) cluster around the Centre Pompidou and major auction houses like Christie’s and Sotheby’s, located in the 8th arrondissement. Private collectors, however, frequent upscale residential neighborhoods: the 16th for wealthy families, the 7th for diplomats, Neuilly for entrepreneurs. "A gallerist targeting American or Asian collectors has every reason to be near five-star hotels," notes a market strategy consultant. "They want to see three galleries in an hour before heading to their meeting at Dior."

In New York, the migration of galleries from SoHo to Chelsea in the 1990s followed this logic: the new industrial spaces offered volumes suited to monumental works while remaining accessible to collectors from the Upper East Side. Today, the same phenomenon is repeating in Los Angeles, where galleries are leaving Culver City for locations near their clients’ second homes in Beverly Hills or Malibu.

For emerging galleries, proximity to art schools matters more. Galerie Allen, located steps from the École Nationale Supérieure des Arts Décoratifs, benefits from a pool of artists and students. "We host open houses during graduation shows, allowing us to spot talent before they’re courted by bigger galleries," confides its director. In Berlin, Galerie neugerriemschneider built its reputation by exhibiting graduates from the Universität der Künste, just a few streets away.

03The cluster effect: isolate or congregate?

In 2000, there were 38 galleries in Chelsea. Today, there are over 300. This concentration phenomenon, seen in Paris around the Marais, in London’s Mayfair, or Hong Kong’s Wong Chuk Hang, follows economic logic: collectors want to compare works and prices in a single trip. "A buyer flying in from Dubai for Art Basel won’t detour to a lone gallery in Basel," explains a Swiss gallerist. "They want to see ten exhibitions in a day."

Yet some art districts emerge precisely by escaping this logic. Paris’s 13th arrondissement, long shunned by galleries, became a laboratory for street art thanks to initiatives like Tour Paris 13, an ephemeral artist residency that drew 30,000 visitors in a month. "We chose this neighborhood because walls were available and rents were low," says Galerie Itinerrance, specializing in street art. "Today, we’re part of an ecosystem that includes artist studios, associations, and schools."

In Berlin, Galerie Esther Schipper’s success in Kreuzberg stems from its ability to turn a neighborhood into a destination. "We host dinners with artists after openings, and collectors come specifically for that," explains its team. "They know they won’t see the same works as at Art Basel, and that’s exactly what attracts them."

04The pitfalls of "trendy" neighborhoods

In 2015, Bushwick in Brooklyn had 60 galleries. Today, only a dozen remain. The reason? Gentrification. "Rents tripled in five years, and the artists who gave the neighborhood its soul were pushed out to Queens," laments a New York gallerist. In Paris, the same scenario plays out in the 19th arrondissement, where artist studios are giving way to luxury lofts. "A neighborhood becomes trendy when galleries arrive, but it stops being trendy when they leave," summarizes an art real estate expert.

Galleries that survive this spiral adopt workarounds. Some sign long leases (15 years or more) to guard against rent hikes. Others partner with municipalities: in Marseille, the Friche la Belle de Mai, a former tobacco factory, was transformed into a cultural hub with subsidized rents. "We pay €5 per square meter, compared to €20 in the city center," explains its director. "In exchange, we commit to organizing workshops for local schools."

Another solution is leaving the city. Hauser & Wirth opened spaces in Bruton (England), Menorca (Spain), and Somerset (USA), attracting collectors seeking "destination" experiences. "Our visitors spend two days on-site: they visit the gallery, eat at the farm’s restaurant, and leave with a work," explains the gallery. "It’s a model that works because it creates a different relationship with art."

05A storefront isn’t always an asset

A street-facing window draws passersby but also exposes works to prying eyes—and sometimes theft. In 2022, a Marais gallery lost an €80,000 painting after a thief smashed the glass in the middle of the night. "We had to invest in bulletproof glass, which added €30,000 to our budget," recounts its owner. Conversely, galleries without windows, like Galerie Chantal Crousel or Galerie Nathalie Obadia, target a specific audience. "Our clients come because they know our program, not because they saw a work while passing by," explains the latter.

No window also allows for spatial play. Galerie Thaddaeus Ropac, housed in a Marais mansion, transformed its ground floor into a monumental atrium displaying sculptures by Kiefer or Baselitz. "We wanted to create a surprise effect, like in a museum," explains its director. In London, White Cube took the concept further by building a 500-square-meter underground space beneath its Bermondsey building, accessible via a spiral staircase.

For emerging galleries, no window can be a forced choice. Galerie Allen, tucked in a passageway in the 11th arrondissement, compensated for its lack of visibility with an aggressive digital strategy. "We organize virtual tours and Instagram lives to reach an international audience," explains its team. "It’s more effective than a storefront, and it costs less."

06When industry becomes a playground

In 2002, PaceWildenstein opened a 2,000-square-meter space in a former Chelsea warehouse. Today, industrial wastelands have become prime locations for galleries showcasing monumental works. In Paris, Galerie Continua took over a former factory in Plaine Saint-Denis, where it exhibits 10-meter-high installations. "We needed a volume traditional spaces couldn’t offer," explains its director.

These sites offer economic advantages: rents are often 50 to 70 percent lower than in central districts. In Berlin, Galerie neugerriemschneider pays €8 per square meter in Kreuzberg, compared to €25 for a comparable space in Mitte. "Industrial sites also attract a different audience: artists, students, collectors seeking more experimental works," observes a Berlin gallerist.

Yet these spaces pose logistical challenges. Former mechanical workshops or abandoned factories often require costly upgrades: electricity, heating, insulation. "We had to install climate control to protect the works, which cost €200,000," says Galerie Continua’s director. Security is another issue: industrial sites are prime targets for squatters and thieves.

07The future of galleries: beyond the walls?

In 2023, David Zwirner opened an ephemeral space in a Venetian mansion during the Biennale. The following year, Hauser & Wirth presented an exhibition in a Sussex farm. These initiatives reflect a broader trend: galleries are leaving city centers for unusual venues where they can create unique experiences. "Collectors are tired of fairs and classic openings," explains a market expert. "They want moments that stand out."

This strategy also responds to economic reality: rents in major cities are becoming prohibitive, even for established galleries. In Paris, Galerie Kamel Mennour opened a second space in the 17th arrondissement, far from tourist routes, to cut costs. "We chose an up-and-coming neighborhood where prices remain affordable," explains its team. "It’s a bet on the future."

For emerging galleries, ephemeral spaces offer flexibility. Galerie Air de Paris organizes exhibitions in private apartments, cellars, or even riverboats. "This lets us test formats without committing to a ten-year lease," explains its director. In Berlin, Galerie Supportico Lopez transformed a former supermarket into an exhibition space for a weekend. "Visitors came because it was ephemeral, not because it was in an art district."

08Choosing your location means choosing your audience

A Marais gallery attracts tourists and occasional collectors. A Kreuzberg gallery reaches artists and students. A Menorca gallery targets wealthy vacationers. Each location implies a different strategy: price points, types of artists exhibited, communication. "A gallery opening in the Marais needs an accessible program, with works priced between €5,000 and €50,000," explains a strategy consultant. "A Kreuzberg gallery can afford to show more radical pieces at lower prices."

Location also determines a gallery’s lifespan. Central spaces, with their high rents, push for rapid exhibition turnover to justify costs. Industrial sites, with their generous volumes, allow for longer, more ambitious projects. "We can keep an exhibition for six months if we want," says Galerie Continua’s director. "In the Marais, that would be unthinkable."

Finally, a location shapes how a gallery is perceived. A prestigious address reassures collectors. A marginal neighborhood attracts contemporary art lovers. An industrial site appeals to experimental art fans. "Your address is your first business card," sums up a Parisian gallerist. "It says who you are before visitors have seen a single work."