Press release "A sluggish rental market, a rebound in the investment market"

The slowdown in the rental market for logistics property* continues, with just over 1 million m² placed (-47% vs H1 2023) in 38 transactions over the first six months of the year (vs 85 in H1 2023). Of these 38 transactions, seven were extensions to existing logistics buildings.

"The 10,000 to 20,000 sq. m segment remains the most dynamic, with two-thirds of deals completed in this half-year for this floor area," says Jean-François Mounic, Managing Director of EOL. XXL transactions of over 50,000 m² accounted for a third of the volume placed.

The Top 3 regions are Centre-Val de Loire, Hauts-de-France and Ile-de-France. These three regions account for two-thirds of the space placed.
Logistics service providers remain the major players in the market, accounting for half of all transactions and take-up. "It is interesting to note that these service providers include both large groups and SMEs. Another notable fact over the period is that a quarter of the space let has come from retail players. "says Jean-François Mounic.

Rental values are fairly stable, although there are still geographical disparities. According to the latest INSEE data, the ILAT has risen by 5.09% over one year.
The vacancy rate is fairly stable compared with the first quarter, standing at 6.2% in France at the end of June. There were 34 greenfield development projects, up on the first quarter. Development projects continue to be constrained by a number of factors: the shortage of land and the ZAN, which are holding back development projects, financing costs, the regulatory framework and the current political and economic climate.

The logistics property investment market, meanwhile, is more buoyant, with almost €1.2 billion invested in the first half of 2024, up 67% on the €698 million invested in the first half of 2023. A number of major portfolios have recently been disposed of and several others are currently being marketed, which should boost the market recovery in the 3rd quarter. The prime rate for logistics warehouses has been stable for several months, at 5% (5.3% for courier services and 6% for other activities). Logistics remains an asset class favoured by investors.

*The analysis covers the market for warehouses of 10,000 sq. m. or more, subject to ICPE classification (Transactions and offers).