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BIG 202 - Logistics and the ZAN headache

Like the real estate industry and the economy in general, the logistics sector has been through a turbulent 2023, during which macroeconomic and geopolitical tensions have redefined the contours of its market. But if both investment volume and take-up have seen significant declines over the past year, could the asset class be ready for a rebound?
By La rédaction Business Immo
December 14, 2023 | 7:00 P.M.

Translated from French.

2024 edition of the Logistics Investment Barometer, based on a survey of 29 investors active in the French logistics real estate market, with assets under management totalling €474.17 billion, reveals that three-quarters of those surveyed expect to see a rise in headline rents this year, and that, whereas only 7% of respondents last year predicted an increase in the value of Class A warehouses, the figure has now risen to 27.6%.

One of the driving forces behind this renewed optimism is the shortage of available logistics space, at a time when France's needs in this area will increase as e-commerce and the drive for reindustrialization continue to grow. At a time when the French Climate and Resilience Act calls for a gradual reduction in the artificialization of land by 2050, the real estate sector's ability to meet its needs through a supply shock is severely handicapped. Between additional regulatory barriers, increased competitiveness for land that has become scarcer, and growing demand that suggests a sustained potential for value creation, investors and developers in logistics real estate will have to find the right equation for the ZAN puzzle.

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