Expert insight: “A rental market still sluggish and an investment market that remains dynamic”
An analysis of the French industrial and logistics real estate market in the first half of 2025, conducted and written by EOL, a specialist in corporate real estate consulting.
The rental market remains subdued due to the delicate economic context and low demand observed in recent months. Forty-two transactions were completed for logistics warehouses over 10,000 m² in the first half of 2025, totaling 1,076,000 m² leased; this volume represents a 24.5% decrease compared to the first half of 2024.
Regarding tenant profiles, 3PLs (third-party logistics providers) have regained their major role, accounting for 45% of the leased space.
A growing geographic divide
“We notice that the geographic divide has further intensified, with the Île-de-France, Hauts-de-France, and Centre-Val de Loire regions representing 70% of the leased volume, compared to less than 20% for the southern half of France,” says Jean-François Mounic, CEO of EOL. The market is driven by logistics warehouses between 10,000 m² and 30,000 m²; however, four transactions over 50,000 m² were also observed.
Regarding rents, disparities exist depending on the quality and location of the assets. As for the ILAT , it has remained stable for six months. The supply rebound and trend of space being vacated continue, with over 4 million m² available, representing a significant increase compared to early 2024.
Development projects with obtained permits represent more than 5 million m² of upcoming supply. Few speculative projects (“white projects”) have been identified in 2025, and these rare operations seem to be concentrated in established markets.
A still dynamic investment market
€607 million was invested in logistics assets in Q2, bringing the total to €1.4 billion invested in the first half of 2025. This volume is up 17% compared to the first half of 2024. “The vitality of this market is confirmed by significant fundraising. The market is very active and volumes should increase given the ongoing marketing of large portfolios,” explains Nicolas Mestrallet, Investment Director at EOL.
The decline in prime rates that began in 2024 continued into the first half of 2025, reaching 4.7%. “We hope that the slight decrease in key interest rates will enable the investment market to maintain its good performance and that the economic climate will become more favorable to allow the rental market to gradually regain momentum,” concludes Jean-François Mounic.
Note: The analysis focuses on logistics warehouses over 10,000 m² subject to the ICPE regulatory framework.
Source: voxlog.fr
