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France : Industrial Market Snapshot - Q1 2017

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France : Industrial Market Snapshot - Q1 2017

The French economy continues to show signs of strength despite uncertainty ahead of the presidential elections. Industrial production, retail activity and e-commerce display upward trends and could support freighters and 3PLs demand going forward.

First estimates of take up for logistics space reveal a level of 664,000 sq.m, in line with the results recorded in Q1 last year. Transactional activity remained strong in the Greater Paris Region with take-up reaching 242,000 sq.m for the 1st quarter of the year. As in 2016, major mass market retailers such as SAMADA/MONOPRIX and ALINEA in Q1 2017 continued to review their supply chain organization, moving from obsolete warehouses to new ones through pre-letting premises or turnkey. The trend is similar in the regional logistics markets where take up reached 421,000 sq.m in Q1 2017. The number of transactions (16) recorded since the beginning of the year suggests an increase in the size average, moving to 26,000 sq.m. The biggest transaction so far has been done by AMAZON; the giant e-retailer will open a new platform of 107,300 sq.m in Boves (Hauts-de-France). Rental values recorded in 2016 remained unchanged in Q1 2017 with rents for new warehousing space in the Greater Paris Region now reaching €55/sq.m/year, thanks to strong demand for new space and a still limited completion of new warehouses.

Source : Cushman & Wakefield

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