ProLogis Releases New Research Report on France's Industrial Property Markets
- Expanding European Union Fuels Growth in French Logistics Property Markets -
DENVER, Nov. 6 /PRNewswire-FirstCall/ -- ProLogis (NYSE: PLD), the world's largest owner, manager and developer of distribution facilities, today released a new research report on the state of the logistics property markets in France.
The report, entitled "France's Logistics Property Markets -- Distribution Gateway to Southern Europe," investigates the sweeping logistics revolution taking place in Europe and its impact on the French logistics property markets. France's centralized location, ample supply of raw land and extensive highway system have facilitated the country's transformation into an essential location for retailers, wholesalers and other users with pan-European logistics strategies.
"France is at the nucleus of a pan-European logistics revolution," said Leonard Sahling, first vice president of research for ProLogis. "Until the 1990s, France's logistics property markets did not provide an organized, well-utilized exchange for the leasing, sale or purchase of logistics property. The establishment of the European Union combined with the lengthening and increasing complexity of the modern supply chain has created new opportunities for property investors there. Well-functioning markets for leasing and selling distribution space not only exist, but have grown large enough to provide lessees, owners, and investors with ample liquidity and stability to attract global capital."
The report is based on both primary and secondary quantitative research as well as interviews with members of French development, government and brokerage sectors. Among the report's key conclusions are the following:
-- Lack of modern distribution space: As borders disappeared within the EU, companies have sought to redesign their distribution networks, increasing their reliance on fewer but bigger facilities, servicing larger geographic regions. Today the total stock of modern space in France is estimated to be 15 to 20 million square meters -- a fraction of the existing inventory -- which comprises almost 90 million square meters. -- Increased outsourcing: In the intensifying quest for a competitive edge, French companies have strived to identify their core competencies and to outsource their logistics needs. In 2006 alone, demand for warehousing space from third-party logistics providers accounted for more than 60 percent of the overall take up. -- Transport infrastructure: France's land transport infrastructure is arguably one of the best in Europe and continues to improve. During the past decade, the French government has funded a substantial expansion of its national network of motorways, rail and ports. Trucks account for 75 percent of the total freight shipments while rail freight accounts for 17 percent -- one of the highest rates in the EU.
"As the EU has grown, companies throughout Europe have strived to broaden their distribution networks from national to a cross-border perspective," said Sahling. "With its central location and good transportation system, many companies have incorporated markets in France into their pan-European distribution networks. Property investors have profited handsomely from this trend, and can look forward to continued healthy returns in the future."
For a copy of the report, please visit the "ProLogis Research Center" website at http://www.prologisresearch.com/France.
ProLogis is the world's largest owner, manager and developer of distribution facilities, with operations in 20 countries across North America, Europe and Asia. The company has $34.4 billion of assets owned, managed and under development, comprising 483.0 million square feet (44.9 million square meters) in 2,669 properties as of September 30, 2007. ProLogis' customers include manufacturers, retailers, transportation companies, third-party logistics providers and other enterprises with large-scale distribution needs. Headquartered in Denver, Colorado, ProLogis employs more than 1,300 people worldwide. For additional information about the company, go to http://www.prologis.com.
Released November 6, 2007