The French logistics market continued to benefit from gradual economic recovery in Q1 2015, with take-up levels inflated by he completion of several large transactions in Lyon, Paris and Marseille. While in-house logisticians in the retail distribution still account for a major share of leasing activity, 3PL were also more active.
Q1 2015 saw a sharp increase in take-up levels year-on-year, with around 700,000 sq.m let or sold to occupiers. Paris and Lyon continued to dominate the market and accounted for 57% of the total volume, boosted by the completion of several very large deals including But’s lease of 59,000 sq.m near Lyon and CDiscount’s acquisition of a 39,000 turn-key scheme in Saint-Mard. Marseille also witnessed a surge in activity with take-up reaching over 100,000 sq.m, albeit this was largely made up of the development of 99,000 sq.m turn-key scheme for saisons du Monde in Saint-Martin-de-Crau.
Whilst increased leasing activity and limited speculative development helped to absorb some available supply, overall vacancy remained at a similar level q/q due to the continuous release of second-hand or obsolete assets by occupiers. The scarcity of large, high-quality platforms have rendered turn-key schemes the quickest route to grade A space for many occupiers and continue to comprise a significant share of total take-up. Nevertheless, the volume of projects expected to break ground is high and construction times remain short.
Source : Cushman & Wakefield