"Two hostages. including one who had petrol poured on them," have been freed police said.
The standoff began around 4:00 pm (1400 GMT), with BFM television reporting that the man had entered the offices of a start-up company on the Rue des Petites Ecuries, a gritty area of the bustling 10th arrondissement.
At least one other man was lightly injured while fighting with the hostage-taker and escaping before police arrived on the scene.
The motive for the attack was not clear but incident did not appear to be terrorism-related.
"Based on our initial investigations it could be a mentally unstable person whose motivations are still unclear," another source said.
France has been on high alert after a series of jihadist attacks in the past three years, most recently a Saturday night knife attack in Paris last month in which one person was killed.
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