Occupiers are increasingly footloose, looking to gain competitive advantage by taking advantage of communications links and cost differentials, which means that some locations are winning business while others are losing.
The winners in Northern Europe have been Lille, Strasbourg and Paris in France and Liege in Belgium, where land values are relatively low and which are within a short drive time of major markets. But the losers have been Berlin, Dusseldorf and Stuttgart in Germany and Amsterdam and Rotterdam in the Netherlands where high rents and land values are restricting demand.
In Southern Europe demand has been strong in Lyon and Marseille in France and Milan in Italy where rents are comparatively low.
King Sturge partner Henry Woodruff said: 'The introduction of the euro is accelerating a profound change in the markets. Vast regional warehousing markets seen in the USA around Chicago and Los Angeles are now emerging in parts of France and Belgium.'
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