Navigating the current French logistics market
After a record-breaking 2024, where industrial real estate emerged as France's most transacted asset class, the first half of 2025 has seen a moderation in the French logistics real estate market.
This period of adjustment, however, reveals a resilient market with underlying strength, particularly for businesses keen on securing strategic warehouse and industrial spaces.
Key market figures: demand and investment stability
The first half of 2025 recorded a 17% decrease in placed demand for logistics warehouses. While this signifies a cooling from peak levels, it's crucial to note that investment in logistics and industrial real estate remained remarkably stable.
A total of €1.7 billion was invested across these sectors, with logistics properties accounting for approximately €1.5 billion of that total. This sustained investment indicates strong long-term confidence from major players in the market's fundamentals.
Future outlook and strategic considerations
Looking ahead, full-year investment forecasts for French logistics and industrial real estate are projected to range between €2.5 billion and €3 billion. This outlook acknowledges ongoing economic, political, and fiscal uncertainties, yet it underscores a continued flow of capital into the sector. For businesses, this market environment could translate into more strategic opportunities, potentially offering greater flexibility in negotiations and a broader selection of available properties as demand recalibrates.
Major transactions signal enduring confidence
Despite the overall slowdown in demand, the first half of 2025 was marked by significant, high-value transactions, according to analyses by Business Immo. Approximately ten deals each exceeding €50 million were identified, underscoring robust market activity for prime assets. These large-scale acquisitions were predominantly driven by international players, signaling global confidence in France's logistics infrastructure.
Notable transactions include EQT Real Estate's acquisition of the Occident portfolio from Blackstone for €150 million, and Amazon's purchase of two warehouses from Goodman, also for €150 million. Such investments highlight the continued appeal of well-located, modern logistics facilities for businesses with extensive operational needs.
What this means for your business
The current market dynamics in French logistics real estate present a nuanced picture. While overall demand has softened, the sustained investment levels and high-value transactions indicate a mature market where strategic assets remain highly sought after.
For businesses seeking to rent or expand their warehouse and industrial footprint in France, this period of market recalibration could offer a strategic window to secure desirable locations and terms before potential future upticks in activity. Understanding these trends is key to making informed real estate decisions that support your operational growth and efficiency.
Source: businessimmo.com
