THE EUROPEAN LOGISTICS MARKET - BNP Paribas Real Estate

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4 PROPERTY REPORT - THE EUROPEAN LOGISTICS MARKET - MARCH 2012 PLENTY OF SUPPLY BUT SHORTAGE OF NEW WAREHOUSES The logistics market recorded a remarkably strong activity in they faced during the year. Take-up for warehouses over 5,000 m² Demand is centred on modern units in prime locations which are typically close to the main consumption and manufacturing areas with skilled labour available and served by strong multimodal transport networks (road, rail and ports). In response to the economic slowdown in 2009 and 2010, speculative development was cut down almost everywhere in evident in most markets. This situation led to a genuine interest for turnkey solutions. The scarcity of new products also induced customers to turn to second hand grade A warehouses, which is becoming a growing submarket. Supply levels remained high and of 2006 and 2007. Rents two years of reduced activity in most logistics markets and high volumes of supply available, the increase in take-up in 2011 did not necessarily materialise in rental growth. A robust demand combined with low supply for new high grade warehouses led to some increase The French market returned to growth in 2011 recording its highest level of take up in three years. Take-up - Warehouses over 5,000 m² 000 m 2 1,400 1,200 1,000 800 600 400 200 0 Paris Birmingham London & South East Hamburg Manchester Frankfurt Lyon Barcelona Berlin Sheffield Antwerp Leipzig Madrid The market was stimulated by the positive economic signs at the beginning of the year, encouraging logistics providers, highly sensitive to the economic climate, to regain a large part in the market. Retailers also strongly contributed to market buoyancy In Germany, the market set a new record year, boosted by large deals due to the restructuring measures in the retail industry and the growth of the online shopping sector. The availability of new space stayed limited since there had been hardly any new speculative schemes built in 2011. In the UK, take-up for warehouses over 5,000 m² has been stable for scarce. This has resulted in the emergence of the design and build in the large unit market. Like in most European countries, retailers and logistics providers have been driving the market in 2011. In the Eastern & Central European countries its European counterparts, speculative developments are almost nonexistent. A shortage of new space available kept vacancy rates low and rentals strong. In Spain warehouses over 5,000 m² taken up was far below the volumes registered in 2007 and 2008. Larger deals were closed in Madrid, Barcelona and Valencia, pulling up take-up. However, pre-lets and turn-key projects were important in Madrid and Barcelona, leaving untouched the vacancy rate. Levels of supply remain high and the release of second hand units onto the market is still expected in the Lille Munich Marseille Cardiff Bristol Düsseldorf Dublin Cologne 2010 2011 Newcastle n.a. n.a. Rotterdam Valencia Amsterdam Lisbon Southampton
Prime rents in Q4 2011 - Warehouses over 5,000 m 2 Lisbon 60 Prime and secondary rents in Q4 2011 - Warehouses over 5,000 m² €/m 2 /year 180 160 140 120 100 80 60 40 20 0 London Glasgow 82 82 Edinburgh 66 Newcastle Dublin Manchester 75 66 63 Birmingham 75 Sheffield 90 67 Amsterdam (Schiphol) Düsseldorf Hamburg Berlin 56 Cardiff 63 82 Bristol 91 Southampton Rotterdam 63 163 61 Antwerp 43 London 58 (Heathrow) 43 43 Cologne Lille Brussels 51 Leipzig 74 Frankfurt 53 Paris 49 Strasbourg Munich 74 48 Southampton Seville Amsterdam 66 Bristol Madrid Edinburgh 36 Valencia Glasgow Birmingham Dublin Frankfurt 63 Munich Lyon Barcelona Rome 44 Hamburg 42 Marseille Madrid Milan 60 Manchester Newcastle Barcelona Rotterdam Cardiff 70 Sheffield PROPERTY REPORT - THE EUROPEAN LOGISTICS MARKET - MARCH 2012 42 Bratislava Rome Düsseldorf Lisbon Warsaw Milan Warsaw 60 0 125 54 Krakow Cologne 250 km Berlin Krakow ©BNPPRE Marketing 2012 Prime Rent Secondary Rent Paris Rents in €/m²/year Leipzig >= 100 70 - 99 50 - 69 40 - 49 < 40 Seville Lyon Antwerp Brussels Lille Bratislava Marseille Valencia 5
Page 1 and 2: PROPERTY REPORT THE EUROPEAN LOGIST
Page 3: A WEAKER EURO TO SUPPORT EUROPEAN E
Page 7 and 8: Net prime yields in Q4 2011 - Wareh
Page 9 and 10: Net prime yields - Warehouses over
Page 11 and 12: NOTES PROPERTY REPORT - THE EUROPEA

THE EUROPEAN LOGISTICS MARKET - BNP Paribas Real Estate

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