Demand in 2001 is down on the previous year but structural changes in light industrial and logistics sectors are helping to drive occupier requirements. In the light industrial sector, an increasing number of businesses from the new economy are looking for high tech space, while in the logistics sector operators are looking for large modern buildings capable of accommodating a wider range of activities.
Rents are continuing to rise in both sevtos of the market, with small warehouse units close to Paris now fetching FFr 550 per sq m ($7.25 per sf)per annum and prime distribution warehouses fetching FFr 350 to FFr 400 per sq m ($4.60 to $5.25 per sf).
Prime industrial yields have tightened but remain higher than in the other main European markets at between 8.8% and 9% for prime new warehouses.
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