France Commercial Property: Q1 2025 Market Update – JLL

by drbyos

French Logistics Real Estate Market Shows Resilience in Early 2025


Logistics Sector Maintains Stability Amidst Economic Shifts

Despite ongoing economic uncertainties, the French logistics real estate market has demonstrated remarkable stability in the first quarter of 2025. Approximately 798,000 square meters of space changed hands, a figure that closely mirrors the previous year’s performance, showing only a slight decrease of 2%.This level of activity is only 8% below the pre-pandemic average, signaling a return to normalcy after the disruptions of recent years.

The number of transactions also remained consistent, with 42 deals closed compared to 41 in the first quarter of 2024, and just slightly below the average of 46 transactions. This consistency underscores the sustained demand for logistics spaces across France.

XXL Platforms and Mid-Sized Warehouses Drive Market Activity

The market for extra-large (XXL) platforms, exceeding 40,000 square meters, remains robust, fueled by several critically important deals despite limited availability along the primary logistics corridors. This segment’s performance surpasses the average, indicating a strong appetite for large-scale distribution centers.

Simultaneously, the demand for mid-sized logistics sites, ranging from 10,000 to 20,000 square meters, has experienced a surge. With 271,000 square meters transacted across 19 deals in the first three months of 2025, these modular warehouses offer a more manageable financial commitment, making them attractive to businesses seeking to optimize their supply chains. This trend reflects a broader strategy of rationalization among companies, as they adapt to evolving market conditions.

The expression of the demand for spaces and in particular “decarbon” remains strong, which remains very encouraging for the rest of the year

The Backbone of French Logistics: Key Regions Lead the Way

France’s primary logistics corridor continues to dominate the national market, accounting for 60% of all real estate transactions. The Lille region stands out with 188,000 square meters transacted, while the Île-de-France region recorded 209,000 square meters. The Île-de-France result was boosted by a single signature of 75,000 m2.

The Center-Val de Loire region also played a significant role, with 152,000 square meters exchanged.These regions form the backbone of France’s logistics network, facilitating the efficient movement of goods across the country.

Looking Ahead: Sustainability and Strategic Locations

As the French logistics real estate market continues to evolve, several key trends are expected to shape its future. The demand for sustainable, “decarbonized” spaces is on the rise, reflecting a growing emphasis on environmental responsibility. Companies are increasingly seeking facilities that incorporate energy-efficient technologies and reduce their carbon footprint.

Strategic locations along major transportation routes will remain highly sought after, as businesses prioritize efficient access to markets and supply chains. The ongoing development of infrastructure projects, such as improved highway networks and intermodal transportation hubs, will further enhance the attractiveness of these locations.

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