France: Logistics real estate market had record year in 2016
13.02.2017 France: Logistics real estate market had record year in 2016Les Echos, 13 Feb 2017, online:-
The logistics real estate market figures released by Cushman & Wakefield for France have confirmed that 2016 was a good year for the sector, with a number of large sea ports announcing major investments in logistics facilities. An example is the port of Marseille, where 250,000 m2 of warehouse space was developed. According to the latest study from the commercial and real estate services company, a total of 3.20mn m2 of logistics real estate was marketed in 2016 after a successful fourth quarter (800,000 m2), reflecting an annual increase of 19% and a record volume for the decade. According to Cushman & Wakefield, the increase in very large operations (platforms covering over 60,000 m2) has been confirmed, with seven recorded over the past ten years for a total of 690,000 m2. The study has noted that this trend, which can be seen from 2013, has accelerated considerably over the past two years and corresponds to the development of closely meshed networks combined with the economies of scale. Additionally, this pace of activity, supported by the redeployment of the supply chain of large-scale distribution, e-commerce and specialised distribution, was not restricted to the Lille-Paris-Lyon-Marseille axis. There were numerous turnkey and own account projects for very large platforms in secondary markets, such as Brittany, Occitanie and the Centre-Val de Loire region, which is also the result of a limited supply of Class A warehouses in the aforementioned logistics corridor. According to the company, this could lead to occasional upward pressures on the most strategic territories.
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