2016 french market report

2016 FRENCH MARKET REPORTCORPORATE REAL ESTATE

PUBLICATION DIRECTORVALÉRIE MELLUL

PUBLICATION EDITORISABELLE ASSENS

RESEARCHCLÉMENT BOUDOUCINDY EMONDLUCIE MATHIEU

2016 FRENCH MARKET REPORT

During our recent survey, which sought to identify your expectations with regard to research, you asked that we focus on key markets and on specific issues. Therefore, in this annual publication you will find:

- maps and analyses covering the main business districts in Paris and Inner Suburbs,

- detailed figures and highlights concerning the Outer Suburbs,

- information about the major Grand Paris project, which offers a forward-looking view of the tertiary markets in the Ile-de-France,

- a chapter devoted to logistics and light industrial premises.

We hope that our 2016 Market Analysis will be a useful tool as you plan your future strategy. We would be happy to provide any further information you may require.

Happy reading,

Isabelle Assens, Head of ResearchNexity Conseil et Transaction

Dear customers and readers,

At Nexity Conseil et Transaction, our ambition is clear and simple: we strive to support your commercial real estate projects. We put our expertise at your service, providing a bespoke analysis of your needs and developing appropriate action plans.

Because a real estate project always drives performance and/or transformation, you have indicated the importance of clear, readily-available information on market data and trends. Our 2016 French Market Report aims to respond to this need.

Some key figures:

In 2015, €23 billion was invested in commercial real estate in France.

Office space in the Ile-de-France represented 65% of this volume

and was negotiated at a prime yield of 3.25%.

It posted annual take-up of 2.2 million m²,

of which 45% was in Paris and 35% was in the Inner Western Suburbs.

EDITORIAL

REAL ESTATE PROJECTKEY DATA

BUSINESS DISTRICTSGRAND PARIS

PRIME YIELD

PARIS REGION OFFICE TAKE-UP

2.2 MILLION M2

INVESTMENT IN FRANCE

€23 BILLION

DATA AT END 2015

The economy and investment in corporate real estate

04 Real estate in its economic and financial environment05 Investment in France

Office property in the Ile-de-France region

10 Take-up12 Transactions > 5,000 m²14 Movements of large corporates16 Rents18 Supply 20 Future supply21 Outlook for 201622 Map of Grand Paris

Logistics and light industrial premises

25 Logistics in France29 Light industrial premises in the Ile-de-France region

Appendix

30 Terminology

CONTENTS

2016 FRENCH MARKET REPORT | 4

A SLUGGISH RECOVERY SHOULD GAIN TRACTION IN 2016Like other European countries during the past year, France has benefited from low oil prices between $45 to $50 per barrel, which have continued to decline in early 2016, a €/$ exchange rate at barely 1.1, historically low credit costs due to quantitative easing, and less restrictive budgetary policies. The ECB decision on 3 December 2015 to extend its monthly €60 billion liquidity injections to March 2017, bringing the total to €1,500 billion, will continue to stimulate the European economy.

Nevertheless, French growth is sliding and inflation is stagnant. 2014 ended with GDP up by only 0.2%, with 2015 forecasts currently at 1.1%. This growth level remains consistently below the euro zone as a whole (0.9% in 2014, 1.5% expected in 2015). Since the subprime crisis, the slowdown in accumulated investment in France has weighed on performance of the various economic actors.

In spite of everything, 2016 should see a recovery, and rising business investment rates could approach 4% according to the OFCE (French Economic Observatory). The cost of capital remains attractive since interest rates remain especially low (10 year French government bond "OAT" at around 1% and 3 month Euribor negative at -0.13% at the end of December 2015), business margins have recovered since mid-2014, particularly due to the CICE scheme (tax credit to support employment competitiveness), and their business outlook is improving.

This recovery scenario remains uncertain due to the volatility of outside factors as well as slowdowns related to both private and public debt reduction. Though France’s commitments to external operations works against a rapid return to a balanced budget, the French economy should start to pick up steam in 2016, reaching 1% growth in GDP during the first half of the year according to INSEE, achieving 1.6% to 1.8% for the year, and perhaps 2% in 2017. The quarterly pace of GDP growth should swing between 0.4 and 0.6% and, as a result of this stabilisation, the public deficit should fall to 2.7% by 2017, versus 3.7% in 2015.

Finally, the employment rate, which has remained above 10% in mainland France, should gradually decrease starting in 2016, in the best case reaching 9.4% at the end of 2017. Recent statements by the government should help restore balance to the employment market with 500,000 training opportunities intended to facilitate re-entry to the workplace, and measures to support employment with small and medium-sized businesses.

REAL ESTATE IN IT’S ECONOMIC AND FINANCIAL ENVIRONMENT

FRENCH GDP GROWTH (%)

Sources: INSEE, OFCE

-3.5-3.0-2.5-2.0-1.5-1.0-0.50.00.51.01.52.02.5

2005

2006

2007

2008

2010

2009

2011

2012

2013

2014

2.5%

0.0%

1.1%

2.0%1.7%

2015

2016

(p)

2017

(p)

Data at 31 December 2015

3 POSITIVE FACTORS

10-YR GOV. BOND RATE

0.995%

OIL PRICE 37$ PER BARREL

1 NEGATIVE FACTOR

UNEMPLOYMENT RATE 10%

.

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A HIGH-VOLUME MARKET€23 billion was invested in commercial property this year, a slight decline compared with the €25 billion committed during 2014. This amount represents approximately 1% of national GDP in 2015, and the French market - which is both deep and diversified - attracts both domestic and international buyers.

On the whole, the past year held few surprises: the breakdown of commitments, whether by asset class, geographic region or transaction size, changed little compared with 2014.

Mega-deals continue to dominate as in previous years, reducing the total number of transactions (480 transactions in 2015 compared with 500 in 2014). Certain trophy assets changed hands during 2015, such as a boutique on Avenue Montaigne which sold for a market value in excess of €100,000/m². In addition, portfolio sales, which are frequently pan-European in nature, boosted volume with 22 sales that included assets located in mainland France. These French assets included in these transactions had an estimated value of €6.5 billion.

GECINA’s consolidated purchase from IVANHOÉ CAMBRIDGE of the head offices of ENGIE in La Défense and of PSA at Avenue de la Grande Armée in Paris 16th arrondissement was the only acquisition over €1 billion signed in 2015, contrasting with 3 massive deals during 2014. Despite a growing number of large transactions over the past 4 or 5 years, sales of such scale remain the exception.

inve

stm

ent


0

5

10

15

20

25

30

2015201420132012 201120102009200820072006

Giga-deals >1€ BnTotal excl. giga-deals

23

Source: Nexity Conseil et Transaction

INVESTMENT IN CORPORATE REAL ESTATE IN FRANCE (€BN)

BREAKDOWN IN 2015 COMMITMENTS BY SEGMENT


65%

ILE-DE-FRANCE OFFICES:

OF 2015 VOLUMES

70 TRANSACTIONS > €100 M:2/3 OF 2015 VOLUMES

16%20%

15% 19%

30%

< €50 M

€50 to 100 M

€100 to 200 M

€200 to 500 M

> €500 M

65% 25%10%

NATIONALITY OF BUYERS IN 2015



CONTINUED SHORTAGE OF PROPERTIES ON THE MARKETAnother notable trend over the past several years was accentuated in 2015: properties for sale on the market are scarce, with investors divided between the opportunity to realise capital gains and the challenges faced when allocating capital to new property acquisitions.

Thus, in today’s competitive market, more than 10 offers are often received for a single property, while a year ago sellers would have been pleased to receive five. Trophy assets and value-added products are especially impacted by the lack of supply. For highly sought-after core / core + assets, supply is increasingly diverse and buildings, which had not sold when put on the market in 2014, bolstered supply this year. Investors are also more frequently planning to sell their healthcare and hotel asset portfolios, which diversifies core supply while meeting the growing demand for managed property.

RESOUNDING SUCCESS OF SPECULATIVE OFF-PLAN DEVELOPMENTS (VEFA)Lethargic supply, combined with tenants’ preference for high-quality buildings, explains investor appetite for VEFAs (off-plan developments) in 2015. With 42 transactions totalling €3.1 billion, it was a record year marked by a rise in speculative sales, even though investors are assessing their risk on a case-by-case basis. In the Ile-de-France (IDF), 17 speculative transactions were identified, totalling €1.3 billion. Among the most emblematic is Smartside, a 40,350 m² project to be delivered in 2017, developed by NEXITY and sold to EDF INVEST. The Paris region is at the heart of current events, and the Grand Paris project has attracted interest: several blocks in the Clichy-Batignolles area, which is currently undergoing redevelopment, have found buyers. VEFAs, which have been limited to the Paris region to date, spread to other regions in 2015. These sales took place primarily in Lyon, Lille and Toulouse, and were sometimes speculative ("en blanc") or semi-speculative ("en gris") in nature.

Building City Surface area Price Buyer Seller

SMART SIDE Clichy (92) 40,350 m² Confidential EDF INVEST NEXITY

ÉLÉMENTS Paris 13 16,000 m² €140 M AVIVA INVESTORS VINCI IMMOBILIER

LOT 07 Paris 17 24,200 m² €140 M CARDIF EMERIGE

VIEW Paris 20 21,375 m² Confidential AMUNDI NEXITY / CRÉDIT AGRICOLE IMMOBILIER

BERCY CRISTAL Paris 12 15,000 m² €125 M CNP ASSURANCES OGIC

SELECTION OF OFF-PLAN SALES IN ILE-DE-FRANCE, REFLECTING PRIME YIELDS AROUND 6%


PORFOLIO SALES > €80 M IN FRANCE


€ Bn

0

1

2

3

4

5

6

7

8

20152014201320122011

Number

5

10

15

20

25

10 9 10

15

22

PORTFOLIO SALES:

€20 BN

IN THE LAST 5 YEARS

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PRIME YIELDS CONTINUE TO FALLPrime yields for property dropped by approximately 20 basis points each quarter, ending 2015 at just above 3%. But the deflationary financial environment has allowed property assets to outperform once again. Even in the Paris central business district (CBD), where rates have never been so low, they remain more profitable than most other financial assets, which have borne the brunt of the decline in 10-year French government bonds (OAT), which has remained below the 1% barrier for many months.

Lower yields in the Paris CBD tend to extend to all prime products. Thus, new office space in major regional cities or Class A logistics centres along the North-South axis were sold at 5%, "speculative" office sales in the Ile-de-France showed a 6% yield and mixed office and light industrial assets in cities like Montpellier posted yields between 6.5 and 7%. In a competitive market environment, even non-prime buildings - distressed assets - saw their yields stall this year. Thus, there has been an overall decline in yields, but this has not upset the rankings among products and locations.

4,50 %Inner Western Suburbs

5,10 %Rest of Inner Suburbs

5,50 %Outer Suburbs

3,25 %Paris CBD

4,25 %Rest of Paris

2015 Prime office yields in Île-de-France2015 PRIME OFFICE YIELDS IN ILE-DE-FRANCE

PRIME OFFICE RETURNS VS 10-YEAR FRENCH GOVERMENT BOND RATES

10-year French government bond rates (OAT)Prime office yield in Paris CBD

0

1

2

3

4

5

6

7

8

2005

2006

2007

2008

2010

2009

2011

2012

2013

2014

2015

2003

2004

2002

2000

2001

225 bps

Sources : Nexity Conseil et Transaction, Banque de France

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ent


In the eyes of French buyers, growth in rents can be achieved within the scope of profitable urban projects, or by working the asset to develop a service offering. Interestingly, foreign investors see more potential growth in rents, while remaining cautious in the case of tenants in place and the potential for re-letting the building.

In addition to their main strategy, which aims to maximize short-term gains, a growing number of buyers are simultaneously developing an alternative strategy of holding the asset, renovating it and returning it to the letting market at a higher rent. In this way, institutional investors become more agile, reflecting their confidence in the property market over the long-term as well as their ability to seize short to medium-term opportunities.

But somewhat paradoxically, investors are reassured by rents which remain relatively low in France, since they see a potential upside that exceeds downside risk. In addition, with rent incentives close to 20% over several quarters, lessors are exhibiting deflationary behaviour with regard to rents, undertaking renegotiations and using general incentives to attract new tenants. Despite everything, this decorrelation appears relative, since the investors themselves are fostering certain trends in the letting market.

In addition, some investors deliberately choose to acquire vacant Paris buildings, planning a vacancy period in which they will conduct a major redevelopment. As an exit strategy, they plan to re-let better-quality space at higher rents than could have been collected from an existing tenant. This type of strategy, followed only in central Paris, aims to achieve maximum value through yields. It favours property location over rent schedules, adhering to the mantra «location, location, location» which is frequently heard in the property market. Importantly, it carries no major risk, since demand for acquisitions is high and supply is scarce in the capital.

NO PROPERTY BUBBLE ON THE HORIZONFaced with relentlessly falling prime yields, it makes sense to wonder whether a property bubble exists. Recall that in 2007, right before the subprime crisis that triggered a worldwide recession, Paris CBD posted a 3.6% prime yield. This previous record low has been beaten over the past several months.

For all that, the current context is very different. First, the risk premium for property, which was negative in 2007, is currently 225 basis points above the 10-year OAT rate. In addition, inflow of liquidity supports the investment market, while in 2007, speculation about bank failures and the end of financing through commercial mortgage backed securities (CMBS) triggered a standstill in property acquisitions, which at the time were being made at loan to value (LTV) ratios above 80% compared with an average of 50 to 60% today.

Finally, during 2007 many opportunistic investors purchased property without effectively assessing their risk. Today’s purchasers avoid such pitfalls.

Thus, at this time there is no property bubble in France.

ACQUISITIONS DECORRELATED FROM THE LETTING MARKETOn the other hand, a related issue concerns the decorrelation of market values and prime yields from the letting market. On the one hand, investors tend to pay a premium for buildings with more secure rent schedules, with long-term leases signed with first-rate tenants. In this regard, it is fair to say that there is a decorrelation between the investment market and the letting market.


"LOCATION,

LOCATION,LOCATION"

INCENTIVES: 20%

UPSIDE > DOWNSIDE

Another significative investment deal: COVEA bought from La Française AM a 7,445 m2 empty office building

to be restructured in 8-10 rue du Renard, Paris 4th.

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VERY POSITIVE OUTLOOK FOR 2016Economic forecasts indicate that both the ECB’s key interest rate and interest rates across the euro zone will remain low throughout 2016, even though they will be under greater pressure than in 2015 following the 0.25% interest rate hike announced by the U.S. Federal Reserve on 16 December 2015.

There has historically been a lag of around one year between interest rate hikes and rising property yields. Accordingly, next year should see prime yields stabilize in the second half of the year, following a potential decline over the 1st half to 2.5%, as was seen in Asia. Sales of certain luxury boutiques in the capital city’s top districts have already recorded prime yields below 3%.

PRIME YIELDS IN PARIS

< 3% Some investors believe that certain assets have become too expensive, while the potential for value creation remains speculative. But overall, commercial real estate combines all the conditions that will continue to attract significant capital from investors around the world. Their reasons are many:

- To build a portfolio optimised for national investors acting on behalf of savers. A transfer is happening from low-earning life-insurance policies to SCPIs (private REITs), which offer a 4.5 to 5% return. Inflows from these specialised property investment vehicles have probably exceeded €3.5 billion in 2015, i.e. potentially 15% of volumes to be invested.

- Opportunity for asset managers and estate agents to achieve capital gains over a very short period of time.

- Protection against future oil revenue losses for Middle Eastern sovereign wealth funds, especially when COP21 has led to a universal agreement on climate change.

- Overall expansionist strategy of Chinese and Asian investors.

There are many reasons to purchase commercial property, and expected volume for 2016 should once again reach €20 to €25 billion. Year after year, France receives approximately 10% of European commitments, compared with 35% for the United Kingdom. While domestic stakeholders sometimes look toward the global international market, foreign investors continue to pay close attention to France. Paris was in second position for those wishing to diversify their European holdings,

A 2016 YEAR

BETWEEN €20 AND €25 BNproving its solid potential for growth despite genuine obstacles.

Completion of property acquisitions remains a long and complicated process, while the tax increases planned for 2016 do nothing to remedy the situation. The market continues to be slowed by a shortage of supply, despite the ongoing disposal of asset portfolios by certain major institutional investors.

French stakeholders are often limited by regulations that require minimum holding periods to optimise the tax consequences of an investment (5 years recommended for OPCI and SCPI property investment funds, 8 years for life insurance) and by liquidity thresholds that must be met by management companies. Thus, domestic investors have relatively long-term strategies which limit the properties likely to be placed on the market.

With the official creation of 13 new regions in early 2016, certain urban areas such as Bordeaux, Toulouse, Lille and Strasbourg could attract a larger number of property investors. Other secondary cities may also emerge, which could replenish the market. The lack of depth in local markets continues to dissuade purchasers, but the explosive growth of the digital economy is transforming a large number of business models, no doubt leading some investors to adjust their selection criteria in 2016.

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OFFICE TAKE-UP

AN ASYMPTOTE AT 2.2 MILLION M² 2015 held a number of surprises, with activity in each quarter frequently out of sync with expectations. Following a lacklustre first quarter, the market revived during the 3rd quarter, during the typically quiet summer season. This momentum continued into the 4th quarter.

In the end, annual take-up totalled 2.16 million m², just above the levels achieved in 2014. This performance seems somewhat weak considering the growth of GDP in France, which rose more sharply. However, the office space market often reacts to the economic environment 12 to 18 months after the fact, leading to hopes that the property cycle will remain buoyant in 2016 as the recovery builds steam.

The lack of transactions of greater than 5,000 m² was the main obstacle for the market in 2015. With only 57 recorded transactions, they represent just 721,000 m² for the year, i.e. 33% of the market as a whole, a very meagre result. Note than in 2014, 64 transactions were posted totalling 852,700 m².

Fortunately, transactions concerning medium-sized properties between 1,500 and 5,000 m² performed significantly better. These lettings correspond to a more diversified kind of tenant, no doubt better able to respond to a rapidly changing economic environment. In an effort to market vacant properties, owners tend to offer office space of over 5,000 m² for division, permitting these transactions to translate into high-quality office space.

The share of new, redeveloped offices remained at 33% followed by recent or renovated offices. The poor relation remains older office space in an average state of repair, which may take many months to market, especially if it is in an undesirable geographic location.

The 2015 market was extremely biased towards more well-established business districts. The Paris CBD posted very healthy results, while other Parisian arrondissements were also very active. The Hauts-de-Seine also performed well, accounting for 37% of take-up despite a decline of some 60,000 m² compared with 2014 and the predictable under-performance of La Défense. Other communes in the Inner Western Suburbs only partially offset this decline. The market remained more lacklustre in the Inner Northern, Eastern and Southern Suburbs.

In addition to lettings, a number of owner-occupier sales took place, especially in Paris, thanks to interest rates that are more attractive than ever. All in all, 50 more transactions were recorded than in 2014, with this thriving market providing effective support for take-up.

32% OF 1ST-HAND OFFICES

ILE-DE-FRANCE REGION OFFICE TAKE-UP (MILLIONS OF M²)

0

0.5

1.0

1.5

2.0

2.5

3.0

201520132011200920072005

2.2


0

0.2

0.4

0.6

0.8

1.0

1.2

> 5,000 m2 1,500 to 5,000 m2600 to 1,500 m2< 600 m2

2011 2012 2013 2014 2015


TAKE-UP BY SEGMENT(MILLIONS OF M²)

PROPORTION OF OWNER-OCCUPIER SALES (% OF M²)


Lettings

88%

Sales12%

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Saint-Ouen

Bondy

VillemombleRosny-

sous-BoisNeuilly-

Plaisance

Noisy-le-Sec

Romainville

MontreuilBagnolet

Aubervilliers

Pantin

Les Lilas

Le Pré- St-Gervais

Saint-Denis

Bobigny

1st

2nd

3rd

4th

5th

6th

7th

8th

9th 10th

11th

12th

13th14th

15th

17th

16th

18th

19th

20th

Arcueil

GentillyLe Kremlin-

Bicêtre

Cachan

Ivry-sur-Seine

Vitry-sur-SeineVillejuif

Alfortville

St-Maur-des-Fossés

Charenton-le-Pont

St-Maurice

Maisons-Alfort

Joinville-le-Pont

VincennesFontenay-sous-Bois

Le Perreux

sur- Marne

St-Mandé

Bois de Vincennes

Champigny-sur-Marne

Bonneuil-sur-

Marne

L'Haÿ- les-Roses

Nogent-sur-Marne

Créteil

Villeneuve-la-Garenne

Gennevilliers

Colombes

La Garenne- Colombes

Bois-Colombes Asnières-

sur-Seine

Courbevoie

Rueil-Malmaison Suresnes

Puteaux

Clichy

Levallois-Perret

Neuilly-sur-Seine

Issy-lesMoulineaux

Sèvres

MeudonClamart

Le Plessis-Robinson

Châtenay-Malabry

Sceaux

Fontenay-aux-Roses

Châtillon

Vanves

Malakoff Montrouge

Bagneux

Bourg-la-Reine

Saint-CloudBoulogne-Billancourt

Nanterre

> 9 %

6 % to 9 %

3 % to 6 %

< 3 %

2015 Activity levels(Take-up / office stock)

2015 ACTIVITY LEVELS (TAKE-UP/OFFICE STOCK)

OFFICE TAKE-UP

TAKE-UP BY DEPARTMENT (MILLIONS OF M²)

0

0.2

0.4

0.6

0.8

1.0

2011 2012 2013 2014 2015

939275 94 Outer Suburbs


A MORE AGILE MARKETAlthough market segmentation shifts from one year to the next, it is striking to note that during the past two years, take-up has trended toward an asymptote of between 2.1 and 2.2 million m². A number of dynamics are playing out, rebalancing both transaction size and geographic distribution, thus providing stability. After a decade marked by wide variations primarily concerning movements by major occupiers, the office space market in Ile-de-France has become more agile and flexible, primarily driven by the internet economy that has spread across all business sectors.

offic

es


BREAK POINT IN 2015 2015 was once again less auspicious than 2013 for transactions of greater than 5,000 m². The second half of the year was clearly more active than the first, but despite everything, transactions of this type were lacking. They numbered 57, an all-time low, and posted a smaller average size. No transaction exceeded 45,000 m² which is unusual, with overall take-up totalling 720,000 m², just one-third of the market.

Over the course of the year, however, occupiers maintained the advantage during negotiations, which could lead to major transactions as the market continues to shift. Property management departments prefer to renegotiate leases in certain cases, sometimes before the end of the term, securing lease renewals with no new transaction.

Built-to-suit office projects and pre-lettings, which were very active in 2014 (45%) fell this year to 35% of the market with 16 transactions. Major occupiers have no doubt pursued consolidation and cost savings during the previous years. For bank insurance institutions, industries and the civil service, these operational and spatial reorganisations are things of the past.

However, because these three business sectors still hold one-half of the major accounts market, investors have resumed their speculative projects. They rely on the future ambitions of tenants, who often take positions in turnkey projects to be delivered at a later date. In this framework, there is a risk that excess supply over 5,000 m² already on the market will not shift, except in Paris. Indeed, occupiers are faced with a number of choices. By way of example, for its planned relocation to the Inner Northern or Eastern Suburbs, which will relaunch in early 2016, the Ile-de-France region studied two options: either undertake construction of new headquarters, or choose an existing building.

Among the selection criteria, public transport service is vital when the quality and efficiency of the premises becomes again the decisive factor, even when faced with financial constraints. Relocation will automatically involve a move to an approved green building, since by definition all large new buildings meet the latest standards. COP21 is not expected to have much effect, since the real estate sector has anticipated climatic change relatively well. The only snag is that large companies, such as certain banks, have announced their intent to reduce the greenhouse gas emissions of properties they occupy, which could trigger a number of transactions starting from 2016.

TRANSACTIONS >5,000 M²

0

5

10

15

20

25

30

35

40

> 20,000 m210,000 to 20,000 m25,000 to 10,000 m2

2011 2012 2013 2014 2015


NUMBER OF TRANSACTIONS > 5,000 M²

TAKE-UP > 5,000 M² (MILLIONS OF M²)


New and restructured offices

0

0.2

0.4

0.6

0.8

1.0

1.2

201520132011200920072005

2nd -hand offices

50% INDUSTRIESBANKING- INSURANCESADMINISTRATIONS

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7th

Rueil-Malmaison

Issy-les-Moulineaux

23

5

49

7

1

8

11

6

12

10

1

2

3

5

4

7

8

6

DSAF 1

ACCORHOTELS

LA POSTE

NOVARTIS

OCDE 2

VILLE DE MONTREUIL

CARLSON WAGONLIT TRAVEL

B2V9

11

12

10

CHANEL

BLABLACAR.FR

INRIA 3

BNP PARIBAS

2nd

1st

Pantin

Montreuil

Courbevoie

Boulogne-Billancourt

12th

1 Direction des Services Administratifs et Financiers2 Organisation de Coopération et de Développement Économiques3 Institut National de Recherche en Informatique et en Automatique

Selection of transactions

TRANSACTIONS >5,000 M²

Transactions > 5,000 m² of which new and restructured offices

Number Volume Change vs. 2014 Number Volume Change vs. 2014

Paris CBD 8 80,600 m² 6 51,500 m²

Rest of Paris 10 138,300 m² 6 110,500 m²

La Défense 8 80,600 m² 5 46,800 m²

Inner Western Suburbs excl. La Défense 20 295,800 m² 14 222,700 m²

Seine-Saint-Denis 7 73,900 m² 5 61,700 m²

Val-de-Marne 0 0 m² 0 0 m²

Seine-et-Marne 1 14,000 m² 1 14,000 m²

Yvelines 1 12,900 m² 1 12,900 m²

Essonne 2 25,100 m² 0 0 m²

Val-d'Oise 0 0 m² 0 0 m²

Total Ile-de-France 57 721,200 m² 38 520,100 m²

SELECTION OF TRANSACTIONS

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valeurs

Exogenous movements

Endogenous movements

DEFINITIONS:Endogenous movements: moves by companies within their original department.Exogenous movements: moves by companies choosing to leave their original department.

MOVEMENTS OF LARGE CORPORATES

METHODOLOGY:For the 170 transactions of greater than 5,000 m² of office space in the Ile-de-France region recorded between 2013 and 2015, we have studied the original department and destination department as well as the reasons for large user movements.

Seine-Saint-Denis

Val-de-Marne

Hauts-de-Seine

Yvelines

Val-d’Oise

Essonne

Paris CBD + 7th

Rest of Paris

233,400 m²

135,400 m²

17,700 m²

104,900 m²

840,800 m²

116,400 m²

9,800 m²

46,300 m²

Seine-et-Marne20,700 m²

17,700 m²

28,100 m²

116,700 m²

69,600 m²63,600 m²

9,400 m²

5,800 m²10,400 m²

163,900 m²

76,600 m²

68,000 m²

5,400 m²

6,500 m²12,000 m²

MAP OF MAIN MOVES BY LARGE USERSMAP OF MAIN MOVES BY LARGE USERS

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FROM MOBILITY TO FLEXIBILITY IN THE MARKETThe geographic distribution of transactions greater than 5,000 m² shows that Paris and the Inner Western Suburbs clearly dominated the market in 2015. Although more than half of transactions involved a move within the same department, 9 companies left Paris for Hauts-de-Seine (Neuilly-sur-Seine, La Défense, Issy-les-Moulineaux and Rueil-Malmaison), while 2 relocated to Seine-Saint-Denis.

Many major occupiers are constantly pursuing financial optimisation, though not all of them. In addition to approximately ten expansions and relocations to next-generation buildings, some tenants are returning to desirable addresses that are consistent with their institutional image and desire to attract new talent. Paris has achieved a solid breakthrough this year. Scarce and expensive new supply has found success among new entrants. The best example of this trend is the letting of 9,500 m² in the #Cloud Paris building to BLABLACAR, located in the heart of the second arrondissement. This type of company, which transcends the start-up business model, is becoming a key player in the future tertiary market. The ‘uberisation’ of the economy may have its limits, creating distorted competition for certain products or commercial services, but it also sparks the desire to take part in a dynamic economy and speeds innovation and transformation in businesses across a wide range of sectors.

Many large companies are now questioning their working methods and the set-up of their offices. Beyond the campus-like feel that attracted them, tenants are rethinking their property as a way to create well-being and add value for their employees. ORANGE is testing new concepts at Villa Bonne Nouvelle, SOCIÉTÉ GÉNÉRALE is planning to operate as a flex office at Val de Fontenay, co-working spaces are targeting both independent workers and major groups such as AXA, which has let space from NEXITY in the Blue Office at Maisons-Laffitte.

Within these "third spaces", interactions between employees of major companies and innovative start-ups, entrepreneurs and freelance professionals become a reality. Decision makers in rapidly growing companies are less susceptible to the implementation of long-term property development plans which do not suit their rapidly changing business. Both lessors and developers must adapt their supply in terms of office space and services, price and contractual flexibility to meet the changing needs of these occupiers.

Beyond the financial issues, in today’s real estate projects the concept of geographic mobility in the strictest sense has eased somewhat, while flexibility is driving a growing number of major moves.

ENDOGENOUS MOVES: 66%

REASONS FOR MOVES BY LARGE USERS


Consolidation

Cost savings

Extension

Modernity

15%

%53%23%

6%

Others

3%

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MOVEMENTS OF LARGE CORPORATES


RENTS FOR NEW PROPERTIES APPROXIMATELY TEN DEALS SIGNED IN PARIS AT A RENT > €700/M²Take-up of new and redeveloped office space fell by approximately 20,000 m² compared with 2014, which was itself a disappointing year. Owners had to come to terms with weak demand, while one year supply approached 1.3 million m².

Despite this observation, signs of a recovery emerged in 2015. The discrepancy between headline rents and net economic rents stopped growing wider. Owners were able to maintain their nominal value, while rent incentives, though high, were no longer rising: an average of 1.5 to 2 months of rent-free periods are granted per year of firm commitment, even though certain markets still require greater incentives of between 2.5 and 3 months.

Following the budgetary restrictions of previous years, following a relatively over-supplied market, in 2015 some occupiers have taken positions in the best buildings within the most prestigious business districts, where supply is scarce. In the Paris CBD, there was a solid revival of transactions for rents in excess of €700/m², with about ten deals signed in 2015 versus only 2 during 2014. Substantial efforts by owners over the past two years have allowed the capital to rediscover its appeal. Tenants in the banking, consulting, luxury and internet sectors have chosen high-end buildings, both redeveloped and renovated. There is only a slight distinction between new and second hand buildings in Paris, so long as they both offer outstanding services. Prime rents for 2015 posted a slight increase, reaching €760/m².

This positive trend has extended to the Inner Western Suburbs, excluding La Défense. Among the 12 contracts signed for new or redeveloped offices, 4 had a nominal value greater than €450/m². On the other hand, the rest of the Inner Suburbs posted a 26% drop in new take-up, which did not encourage a recovery in rental values. Finally, in the Outer Suburbs, take-up of new properties showed vitality with 20% growth in volume, primarily in Saint-Quentin-en-Yvelines and Marne-la-Vallée. However, rental values remain utterly stable in these areas, with prime rents having difficulty exceeding €220/m².

PRIME RENT: €760/M²

OFFICE RENTS

AVERAGE 1ST-HAND HEADLINE RENTS(€/M2/YEAR EXCL. TAXES AND CHARGES)


100

200

300

400

500

600

700

800

Boulogne-BillancourtParis CBD

H2 2

007

H1 2

008

H2 2

008

H1 2

009

H1 2

010

H2 2

009

H2 2

010

H1 2

011

H2 2

011

H1 2

012

H2 2

012

H2 2

006

H1 2

007

H1 2

006

H1 2

013

H2 2

013

H1 2

014

H2 2

014

H1 2

015

H2 2

015

Saint-Denis

La Défense

SQY / Outer Suburbs

Bois de Vincennes

Bois de Boulogne

PRIME HEADLINE RENTS IN ÎLE-DE-FRANCE (€ / M² / YEAR EXCL. TAXES AND CHARGES)

275 €Inner Eastern Suburbs

230 €Outer Suburbs

760 €Paris CBD

760 €Rest of Paris

330 €Inner Southern Suburbs

325 €Inner Northern Suburbs

575 €Inner Western Suburbs

PRIME HEADLINE RENTS IN ILE-DE-FRANCE (€/M2/YEAR EXCL. TAXES AND CHARGES)

ct.nexity.fr


OFFICE RENTS

METHODOLOGY:

Index of second-hand rents in Ile-de-France

Nexity Conseil et Transaction Research Department has put together a rental index for the Ile-de-France region, based on headline rents for second-hand office space transactions. This quarterly index has been backdated to 01/01/2002. Its general principle consists in fixing the geographic breakdown of the sample so that locations of transactions from one quarter to the next do not influence changes in the index.

Creation of the sample

More than 12 million m² of second-hand offices were transacted in 220 boroughs between 2006 and 2015. From these, we have selected 60 boroughs accounting for 85% of the transaction volume over the period. Take-up between 01/01/2006 and 31/12/2015 determines each borough’s final weighting in the index.

Calculation of the indexThe average rent for the last six months of transactions is recorded for each borough once a quarter. A weighted average rent for the Ile-de-France region (see creation of the sample) is then calculated and converted to base 100 in Q1 2002. If there are no transactions listed for the last six months, the average rent for the previous quarter is used.

DepartmentNumber of boroughs in the sample

Representativeness of the sample (% of take-up in the

department)

Proportion of take-up

in the Ile-de-France

Paris 12 90% 38%

Hauts-de-Seine 14 87% 31%

Seine-Saint-Denis 6 71% 5%

Val-de-Marne 6 70% 3%

Yvelines 9 64% 3%

Essonne 6 62% 2%

Val-d’Oise 4 72% 2%

Seine-et-Marne 3 29% 1%

RENTS FOR SECOND-HAND PROPERTIES: PRIORITY GIVEN TO QUALITYFollowing relative stabilisation at the start of the year, the second-hand rent index for the Ile-de-France gained 2 points during the second half of 2015. It ended the year at 108.7.

As with rents for new properties, the strength of Parisian take-up has led to a substantial rise in rents for second hand properties, as occupiers have generally preferred higher-quality premises. Within the capital, renovated office increased its share of take-up to 25%, while the second-hand rent index soared by 4 basis points in one year to reach 118.4.

This trend was reversed in the Inner Suburbs, where rental values fell slightly compared with the end of 2014. Renovated properties recorded a surprising drop, comprising just 40% of take-up in 2015, compared with over 60% in 2014. Very few large transactions were signed in the Inner Suburbs this year, which explains this trend to a large degree. Even for small and medium spaces, renovated offices found less favour, with take-up declining by 8%. Recent offices, offered at attractive rents, fared somewhat better.

In the Outer Suburbs, any similarities between rents for new and second-hand properties ended. This latter index rose sharply to reach 106.1, as opposed to 101.2 at the end of 2014. This reflected a 30% increase in take-up of renovated properties. Qualitative repositioning of supply through light renovation is often an effective strategy to let the abundant supply that exists within these territories.

INDEX FOR 2ND-HAND OFFICE RENTS IN THE ILE-DE-FRANCE REGION


60

90

120

150

CCI

Index for 2nd-hand office rents

Q1 2

005

Q1 2

006

Q1 2

007

Q1 2

008

Q1 2

010

Q1 2

009

Q1 2

011

Q1 2

012

Q1 2

013

Q1 2

014

Q1 2

015

Q1 2

003

Q1 2

004

Q1 2

002

108.7

Q1 2

016

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A YEAR FOR RENOVATIONSInitial absorption of immediate supply was noted in 2015, with one year supply absorbed to a lesser degree. They returned to their 2013 levels, at 3.9 and 5.2 million m² respectively.

Between 85% and 90% of the 5.5% decline in immediate supply was attributable to lettings. However, previously insignificant phenomena became more widespread: some supply was held back for renovation, or even withdrawn from the market or reconverted to housing or assisted living facilities, especially in the capital and the Inner Western Suburbs.

One year supply was taken up more slowly due to several deliveries planned for 2016. In Paris, over 110,000 m² new and redeveloped properties will enter the market, following two buildings within the Quadrans development (46,000 m²) to be completed this year in the 15th arrondissement. In Hauts-de Seine, where the D2 tower and a portion of the Majunga Tower in La Défense are vacant, a number offices under construction are expected for 2016, including 3 in Boulogne-Billancourt.

In total, the additional 380,000 m² to be delivered in the next 12 months in Ile-de-France, combined with the 900,000 m² in immediately-available new office space should be enough to meet demand.

Second-hand supply fell by 2% over a one year period. With the best renovated properties generating the most interest, certain opportunistic owners elected to undertake extensive work, and their buildings were temporarily removed from the supply. This includes Élysées La Défense, now known as Window, which will offer more than 40,000 m² of redeveloped office space in 2017. Another example, the Nieuport in Vélizy-Villacoublay will offer over 57,000 m² of renovated and certified office space in 2016. High-quality supply is constantly being renewed, even for offices of less than 5,000 m², where renovations are proceeding to achieve a new record of 863,000 m².

On the other hand, vigorous take-up in Paris will result in a slight reduction of supply in the capital this year, from 1.4 million m² at the end of 2014 to 1.2 million at the end of 2015. This level does not begin to approach the Hauts-de-Seine, the department with the region’s greatest supply at 2.1 million m².

At the current rate of transactions, it will take nearly three years to fully market the inventory in the Inner Western Suburbs. Nevertheless, offices with greater than 5,000 m² available are relatively new, well-served by public transport and dividable by up to 80%, making high-quality space available to medium-sized businesses while accelerating the letting of these buildings.

In the Outer Suburbs, where supply is up slightly, two-thirds of the space remains in an average state of repair. Reconversion to housing stock is generally too unprofitable for these assets. Some owners have elected to undertake less extensive works, and the number of renovated properties has risen by 8% over one year.

OFFICE SUPPLY

0 0.5 1.0 1.5 2.0 2.5

2011 2012 2013 2014 2015

Paris

Hauts-de-Seine

Rest of Inner Suburbs

Outer Suburbs


SUPPLY BY AREA (MILLIONS OF M²)

SUPPLY IN THE ILE-DE-FRANCE REGION (MILLIONS OF M²)


Immediate supply One year supply

0

1

2

3

4

5

6

2000 2005 2010 20151995

TYPOLOGY OF ONE YEAR SUPPLY (MILLIONS OF M²)


0

1

2

3

4

5

2nd-hand offices

New and restructured offices

Q1 2

005

Q1 2

006

Q1 2

007

Q1 2

008

Q1 2

010

Q1 2

009

Q1 2

011

Q1 2

012

Q1 2

013

Q1 2

014

Q1 2

015

Q1 2

003

Q1 2

004

Q1 2

016

1.3

3.9

ct.nexity.fr


OFFICE SUPPLY

HAUTS-DE-SEINE:

3 YEARS TO MARKET

CURRENTLY AVAIBLE OFFICE SPACE

MARKETING PERIODS AND VACANCY


Marketinf periods (months)

20152010200520001995

Vacancy rate (%)

(months) (%)

2

4

6

8

10

23 7.5

5

10

15

20

25

30

35


MAP OF SUPPLY IN BUSINESS DISTRICTS

Dynamic markets

Markets offering opportunities

Over-supplied markets

Markets with insufficient demand

16%

14%

12%

10%

8%

6%

4%

2%

0%

10 months0 months 20 months 30 months 40 months 50 months 60 months 70 months

Marketing periods in Ile-de-France = 23 months

Ile-de-France vacancy rate = 7.5 %

Outer Suburbs

Hauts-de-Seine Nord

Rueil - Nanterre

Neuilly - LevalloisBoulogne - Issy

Paris CBD

La Défense

Inner Eastern Suburbs

Inner Southern Suburbs

Rest of Paris

Inner Northern Suburbs

Péri-Défense

15 MONTHS OF NEW SUPPLY IN STOCKAfter gradually climbing since 2007, immediate supply posted its first decline, with the Ile-de-France vacancy rate falling to 7.5% versus 7.9% at the end of last year.

Nevertheless, the theoretical marketing period of the supply remained relatively stable at 23 months. In fact, take-up over the past 3 years, used to calculate this figure, has also declined, as the 2.3 million m² from 2012 is no longer part of this average.

For new office space, supply rose incrementally while take-up declined. It will now take 15 months, compared with 14 months for last year, to let the supply of new and redeveloped office space. Despite everything, this market is more fluid, since it still takes 27 months to move older buildings in an average state of repair, notwithstanding the decline in immediately-available second-hand properties.

As usual, Parisian sectors have struck a balance, with a marketing period of the supply at less than one and a half years. The market fluidity threshold for the Paris CBD has become critical, with a vacancy rate of only 5% accompanied by strong demand. Supply in Eastern Paris is also tight, with a vacancy rate of just 2.3%, the lowest in the Ile-de-France. Beginning in 2017, deliveries in the Paris Rive Gauche ZAC (mixed development zone) will start to replenish supply.

The region’s highest vacancy rate reached 14.4.% in the Inner Southern Suburbs, specifically in Hauts-de-Seine South. This sector clearly lacks sufficient demand to take up its excess supply over the short to medium-term. Péri-Défense and Hauts-de-Seine North could also find themselves in a similar position.

The Inner Suburbs offer outstanding opportunities, while the Outer Suburbs have a lack of demand, which is at times significant. Periods to fully let supply which extend past 3 years shows how certain markets are poorly positioned for the long term.

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A REPLENISHED MARKET IN LA DÉFENSE AND IN PARISWith nearly 800,000 m² available immediately, the supply of new space greater than 5,000 m² is more extensive than last year. The million m² barrier will be surpassed once buildings in progress are added to the mix during 2016. With an average of 550,000 m² taken up over the past three years, the market has a substantial surplus at the present time.

Concerns about a lack of quality supply in certain established sectors has given way to renewed investor optimism and confidence. They are enjoying the benefits of a favourable environment and are less hesitant to launch speculative transactions. A number of certain projects - three-quarters of them new - have been identified for 2017 and 2018. This volume is almost equal to the amount of immediate supply, and will replenish a market which has shown a desire for new builds.

Again, the most significant projects are taking place in La Défense and its surrounding areas, where over 300,000 m² are expected (of which 238,000 m² are certain), including 51,000 m² at the Alto tower and 45,000 m² at the Canopy building in Courbevoie. Despite record absorption in 2014, La Défense was able to replenish its high-quality building supply.

In Paris in addition to 17 active transactions in the market for 2016, a number of significant projects will be delivered in 2017 and 2018. In the CBD, no less than 11 buildings will be launched, including major redevelopments, led by the newly-created Clichy-Batignolles district, where the first delivery will take place in early 2017 with the 20,000 m² Season building. Outside of the business district, the south of Paris has assembled a number of transactions, led by the Paris Rive Gauche ZAC (mixed development zone). This new supply will replenish a Parisian market with a relatively low vacancy rate and a clear desire for high-quality buildings.

In the Inner Northern and Eastern Suburbs, immediate supply is just beginning to be absorbed, and the launch of future projects remains uncertain. However, nearly 100,000 m² with Universeine in Saint-Denis and the first tranche of City Seine in Ivry-sur-Seine are expected in 2018, provided that potential demand supports these large-scale projects. Supply remains uncertain in other sectors of the Ile-de-France, with over 300,000 m² of potential office space between 2017 and 2019.

FUTURE SUPPLY

AreaTake-up of 1st-hand space > 5,000 m²

from 2013 to 2015

Immediate and certain supply

from 2016 to 2018

Breakdown of development with permission granted Absorption capacity

of certain supply2016 2017 2018

Paris CBD 167,100 m² 239,900 m² 34% 43% 23% 17 months

Rest of Paris 317,700 m² 322,400 m² 39% 45% 16% 12 months

La Défense 187,000 m² 238,100 m² 62% 38% 0% 15 months

Inner Western Suburbs excl. La Défense 586,300 m² 944,800 m² 45% 39% 17% 19 months

Rest of Inner Suburbs 228,000 m² 420,300 m² 31% 16% 52% 22 months

Outer Suburbs 138,700 m² 190,400 m² 79% 14% 6% 16 months

Total Ile-de-France 1,624,800 m² 2,355,900 m² 45% 34% 21% 17 months

METHODOLOGY:To calculate the absorption capacity of new supply, we have determined the level of immediate new supply and supply for delivery by 2019 for each area and compared it with average take-up of new and restructured offices in the last five years. In order to estimate new certain and uncertain production, our commercial teams reviewed supply and officeprojects potentially deliverable before the end of 2019, taking into account the following criteria: the project’s progress (building permit, urban planning, investor financing, etc.), the vacancy rate, the area’s dynamism, competitor projects and the operator’s capacity for risk-taking.

PARIS CBD:

12 CERTAIN PROJECTS BY 2018


NEW AND RESTRUCTURED FUTURE SUPPLY>5,000 M² BY 2019(MILLIONS OF M²)

Immediate

0

0.2

0.4

0.6

0.8

1.0

1.2

2019201820172016

Certain Uncertain

Average take-up of new and restructured offices> 5,000 m² over 3 years

ct.nexity.fr


OUTLOOK FOR 2016

TENANTS AT THE HEIGHT OF DIGITAL TRANSFORMATION IN 2016/2017A more sustained economic recovery as from 2016 should benefit employment, household consumption and corporate investment. Office occupiers are likely to have better visibility over their business in the short to medium term, following a lacklustre 2015.

Some tenants, whose financial position remains uncertain should benefit from relatively low rents in 2016, enabling them to sign leases to buildings that better suit their needs before rental values again start to increase in the second half of the year. Because the market should gradually shift in favour of lessors, other occupants may be less able to renegotiate terms with their current landlords, leading to relocations. Other innovative and agile companies will change their location due to rising sales, an expanding workforce, or the desire to attract and/or retain talent. Major occupiers will continue their consolidation, and could occasionally leap at opportunities. However, only the public sector appears to be planning large-scale movements, coordinated by France Domaine, with the goal of streamlining occupancy and property costs.

Due to these favourable factors, annual take-up of office space in 2016 should reach 2.3 million m², following the strength recorded in 2015.

With 2 million m² expected by the end of 2017, there will be an abundance of certain supply of new properties. In order to avoid obsolescence in the eyes of potential tenants, second-hand office space - which makes up three-quarters of supply - will continue to undergo more frequent renovations. During 2016, 45 to 50% of these products will be affected, versus scarcely one-third 10 years ago.

Beyond these figures, all businesses, regardless of their size and activities, are currently adapting to new circumstances driven by the booming sharing economy. The growing power of start-ups shows that the Internet economy is becoming a driver of the future tertiary market in France. Alongside pioneering small and medium businesses, certain

major web companies are currently taking up substantial office space, at times within pricey buildings in the heart of Paris. The profitability and sustainability of the digital sector is well-established and leads to highly promising forecasts. A profound transformation of the French economy is under way.

The ever-present digital transformation extends far beyond web-based stakeholders. All tenants must adapt their property to the growing need for connectivity and flexibility. Many companies are preparing for their digital transformation, creating a new source of demand for the office market in the coming years. The impact of new working methods, innovative services such as WiFi, integrated into connected, intelligent buildings, teleworking and co-working spaces will gradually refashion the appearance of the Ile-de-France market.

The influence of the Internet economy on office space in the Paris region is far more visible than the Grand Paris project. Although transport lines are slowly starting to take shape within a more reasonable time frame from the tenants’ point of view, new extensions of service expected in 2020 involve relatively few business districts in the Ile-de-France, except for the extension of metro lines 12 and 14 to meet junctions 13, 17 and 19 of the périphérique.

Congestion will be relieved in the Inner Western Suburbs when the RER E connects La Défense to Gare Saint-Lazare, planned for 2022. Thus, it is still too early to see any positive effects on these market sectors with excess supply. Finally, in the Southern part of the Paris region, the tertiary market will develop along future metro line 15. But the completion date is further in the future (2025) and it is likely that these developments will be mixed-use business parks rather than pure office space, to work in collaboration with major research centres and universities near Cachan-Villejuif-Val de Bièvre and the Orly-Rungis economic hub.

FORECAST FOR 2016:

TAKE-UP

2.3 MILLION M2

NET ECONOMYCO-WORKING

TRANSPORTS 2020

DIGITAL

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MAP OF GRAND PARIS

4

14

12

111

6

6

12

1

1

17

18

14

M

M

M

11

M

M

MM

M

M

16

16

14

15

15

14

M 11

M1

E15

1715

18

M

MM

M

M

M

T

M 14

M4

M12

T 3

T9

T 9

T 10

T 10T 6

T

T1

1

T 1T 4

T4

3

Épinay-sur-SeineRER C

Versailles ChantiersRER C

Satory

Saint-Quentin Est

CEASaint-Aubin

Orsay - Gif PalaiseauMassy - PalaiseauRER B, RER C

Massy Opéra

Antonypôle

Orly Aéroport

Nogent - Le-PerreuxRER E

Val-de-FontenayRER A, RER E

Nanterre La FolieRER A

La DéfenseGrande ArcheRER A, M 1

Olympiades

Pont de RungisRER C

Porte de Thiais

Chevilly Trois Communes

Kremlin-Bicêtre

Maison-Blanche

Neuilly Hôpitaux

VillemombleMairie des Lilas LibertéPlace Carnot

Hôpital IntercommunalLa Boissière

Le Vert de MaisonsRER D

Créteil l’ÉchatM 8

St-Maur - CréteilRER A, TVM Champigny Centre

Bry - Villiers - ChampignyRER E

Villejuif IGR

Pont de Sèvres

ClamartChâtillon - MontrougeM 13

BagneuxArcueil - Cachan

Vitry Centre

Noisy - ChampsRER A

Villejuif Louis Aragon - M 7

Issy - RER C

Les ArdoinesRER C

BondyRER E, T 4

Nanterre La Boule

Rueil - SuresnesMont-Valérien

Saint-Cloud

Rosny Bois-PerrierRER E

Chelles - Gournay RER E

Porte MaillotRER C

Mairie de Montrouge

Verdun Sud

Parc des ExpositionsRER B

Aéroport Charles de Gaulle T2RER B

Les GrésillonsRER C

Bois-Colombes

Bécon-les-Bruyères

Triangle de Gonesse

St-Denis PleyelRER D, M13

Neuilly Fauvettes

Pont de BondyT 1

Bobigny Pablo PicassoM 5, T 1

Fort d’Aubervilliers - M 7

Mairie d’Aubervilliers

Sevran - LivryRER B

Sevran - BeaudottesRER BAulnay

Le Blanc Mesnil

Le Bourget - RER BStade de France - RER B

Front Populaire

Aimé Césaire

Saint-Lazare

Pont Cardinet

Clichy - St-OuenRER C

Mairie de St-Ouen - M 13

Porte de ClichyRER C, M 13

Porte de la Chapelle

Porte d’Asnières

Aéroport Charles de Gaulle T4 Le Mesnil-Amelot

PoissyRER A

To Mantes-la-Jolie

La Courneuve Six Routes

Château de VincennesRigollots

La Croix de Berny

ClamartPlace du Garde

Porte de Choisy

Orly Ville

Viroflay Rive Droite

Hôpital Béclère

Gabriel Péri

Les Courtilles

Noisy-le-Sec

Gargan

Montfermeil Hôpital

Clichy - Montfermeil

Tram Express Nord

Drancy Bobigny - T 1

To ÉvryTram Express Sud

Tram Express Sud

Sources : SGP, STIF (July 2015)

Robert Wagner

LondeauDomus

Le Bourget Aéroport

... by 2020

... by 2025

... by 2030

Grand Paris...

RER EM15

RER E

M15

M15

M15

M15

M15

M11

M11

M18

M18

M14

M15

M16 - M17

M16

M16

M16

M15

M17

M17

M14

M1

M15

M15

ct.nexity.fr


4

14

12

111

6

6

12

1

1

17

18

14

M

M

M

11

M

M

MM

M

M

16

16

14

15

15

14

M 11

M1

E15

1715

18

M

MM

M

M

M

T

M 14

M4

M12

T 3

T9

T 9

T 10

T 10T 6

T

T1

1

T 1T 4

T4

3

Épinay-sur-SeineRER C

Versailles ChantiersRER C

Satory

Saint-Quentin Est

CEASaint-Aubin

Orsay - Gif PalaiseauMassy - PalaiseauRER B, RER C

Massy Opéra

Antonypôle

Orly Aéroport

Nogent - Le-PerreuxRER E

Val-de-FontenayRER A, RER E

Nanterre La FolieRER A

La DéfenseGrande ArcheRER A, M 1

Olympiades

Pont de RungisRER C

Porte de Thiais

Chevilly Trois Communes

Kremlin-Bicêtre

Maison-Blanche

Neuilly Hôpitaux

VillemombleMairie des Lilas LibertéPlace Carnot

Hôpital IntercommunalLa Boissière

Le Vert de MaisonsRER D

Créteil l’ÉchatM 8

St-Maur - CréteilRER A, TVM Champigny Centre

Bry - Villiers - ChampignyRER E

Villejuif IGR

Pont de Sèvres

ClamartChâtillon - MontrougeM 13

BagneuxArcueil - Cachan

Vitry Centre

Noisy - ChampsRER A

Villejuif Louis Aragon - M 7

Issy - RER C

Les ArdoinesRER C

BondyRER E, T 4

Nanterre La Boule

Rueil - SuresnesMont-Valérien

Saint-Cloud

Rosny Bois-PerrierRER E

Chelles - Gournay RER E

Porte MaillotRER C

Mairie de Montrouge

Verdun Sud

Parc des ExpositionsRER B

Aéroport Charles de Gaulle T2RER B

Les GrésillonsRER C

Bois-Colombes

Bécon-les-Bruyères

Triangle de Gonesse

St-Denis PleyelRER D, M13

Neuilly Fauvettes

Pont de BondyT 1

Bobigny Pablo PicassoM 5, T 1

Fort d’Aubervilliers - M 7

Mairie d’Aubervilliers

Sevran - LivryRER B

Sevran - BeaudottesRER BAulnay

Le Blanc Mesnil

Le Bourget - RER BStade de France - RER B

Front Populaire

Aimé Césaire

Saint-Lazare

Pont Cardinet

Clichy - St-OuenRER C

Mairie de St-Ouen - M 13

Porte de ClichyRER C, M 13

Porte de la Chapelle

Porte d’Asnières

Aéroport Charles de Gaulle T4 Le Mesnil-Amelot

PoissyRER A

To Mantes-la-Jolie

La Courneuve Six Routes

Château de VincennesRigollots

La Croix de Berny

ClamartPlace du Garde

Porte de Choisy

Orly Ville

Viroflay Rive Droite

Hôpital Béclère

Gabriel Péri

Les Courtilles

Noisy-le-Sec

Gargan

Montfermeil Hôpital

Clichy - Montfermeil

Tram Express Nord

Drancy Bobigny - T 1

To ÉvryTram Express Sud

Tram Express Sud

Sources : SGP, STIF (July 2015)

Robert Wagner

LondeauDomus

Le Bourget Aéroport

... by 2020

... by 2025

... by 2030

Grand Paris...

RER E

M15

RER E

M15

M15

M15

M15

M15

M11

M11

M18

M18

M14

M15

M16 - M17

M16

M16

M16

M15

M17

M17

M14

M1

M15

M15

offic

es


DECLINING OIL PRICES BOOST THE LOGISTICS MARKETAt first glance, economic indicators seem relatively unfavourable for the logistics market, as they did in 2014. France posted slower growth than the euro zone as a whole, and unemployment rates remain above 10%.

In practice, several facts have supported the market: household purchasing power is on the rise and, above all, the price of diesel has fallen below the symbolic mark of 1 euro per litre. Declining oil prices are a boon to companies connected with the transport and logistics sectors, even though new taxes will increase the cost of diesel at the pump by several cents as from 2016. The French government intends to move toward more balance taxation of petrol and diesel and, following from the COP21 climate change conference in December 2015, plans to implement a new carbon tax which could rise four-fold by 2030.

Reducing the carbon footprint is a global priority. Europe has released one-half of the budget to build the Seine-Nord Europe Canal to develop river transport, which generates less pollution than road transport. By 2023-2024, this infrastructure will permit the passage of vessels of up to 4.500 tonnes, compared with 750 tonnes today.

In contrast, development of air freight - marginal but environmentally-unfriendly - is also expected: AIR FRANCE – KLM - MARTINAIR CARGO is increasing operations in the pharmaceutical/health sector and in express delivery services; airline companies SAUDIA and EMIRATES SKYCARGO hope to expand their freight services at several French airports, especially Roissy but also at Lyon and Basel-Mulhouse;and finally, the International Air Transport Association (IATA) plans to lower door-to-door delivery times to 48 hours by 2020, aware that these times have remained at 6 to 7 days for the past 40 years. At present, a large proportion of air freight customers are express transporters, whose European hubs are divided among several cities on the continent. In France, FEDEX maintains its hub at Roissy.

THE STRONG FUTURE OF E-COMMERCE The logistics market is continuing to transform to address the needs of e-commerce, which in France is expected to post 10% higher growth for 2015 than was projected at the start of the year. New forms of collaborative urban delivery and related goals lie at the heart of the market’s digital transformation.

Other indicators are positive over the short to medium term: the business climate index recently improved to its highest level in four years, heralding increased activity and a possible decline in unemployment rates in the coming quarters. In particularly, INSEE forecasts further improvement in manufacturing output to mid-2016, with industrial companies becoming more agile when expanding their business and securing supplies.

LOGISTICS IN FRANCE

47

40

60

80

100

120

H2 2015H1 2015H2 2014H1 2014H2 2013H1 2013

Source: Ministère de l’Écologie, du Développement Durable et de l’Énergie

AVERAGE PRICE OF BRENT ($ PER BARREL)

0

10

20

30

40

50

60

70

80

2015 2014201320122011201020092008200720062005

Source: FEVAD

E-COMMERCE TURNOVER IN FRANCE (€BN)

FEDEX

UPSDHL

TNT

(Paris)

(Liège)(Cologne)

(Leipzig)

LES HUB EUROPÉENS DES 4 PRINCIPAUX INTÉGRATEURS EXPRESS

EUROPEAN HUBS OF 4 MAJOR EXPRESS TRANSPORTERS

logi

stics

ct.nexity.fr


Finally, the new European Union Customs Code will take effect in 2016. It introduces Authorised Economic Operator (AEO) status which indicates that the recipient has proven that its supply chain is secure. It also provides for reduced paperwork to facilitate imports and accelerate the customs clearance process by limiting the time that goods are held, which should benefit the cross-border logistics market and open new opportunities. The French customs authority has launched its "Dédouanez en France" (Clear Customs in France) plan to help French logistics platforms gain international market share and encourage industrial production in France.

A RECORD YEAR FOR FRENCH LOGISTICS PROPERTYAgainst this background, logistics properties in France have performed very well, with record take-up of some 3 million m² in 2015, up 28% compared with 2014.

The trend toward warehouse consolidation continues to intensify. 19 transactions in excess of 40,000 m² were recorded, compared with only 12 in 2014. A growing number of warehouses are approaching - and even exceeding - 100,000 m², such as GIFI in Bouches-du-Rhône with 103,000 m² and MAISONS DU MONDE with 96,000 m². Assets smaller than 20,000 m² remained stable and seem to have settled into a pattern of around 100 transactions per year.

Historically around 30-35%, the proportion of take-up by logistics operators fell to 24%, i.e. 600,000 m², down 20% compared with 2014. On the other hand, the proportion of Internet-related companies and distributors rose sharply. The extraordinary growth of e-commerce is impacting food and specialist distributors, which must adapt their property holdings accordingly. Now more than ever, cutting delivery times is the top objective. Accordingly, distributors have taken up more than half of the m² let in 2015, compared with only 31% in 2014. At the same time, take up by Internet-related companies such as AMAZON and CDISCOUNT has more than doubled.

Despite low interest rates, only 20% of m² on the market involved owner-occupier sales. Leases were still preferred in the logistics market, especially since headline rents have changed little over time. They generally fall between €35-45/m² in the regions, and rise to €56/m² in the Ile-de-France. Tenants still wish to sign shorter, more flexible leases, requiring investors to work more intensively on asset management in the event of a tenant’s departure, so they can quickly re-let some or all of the vacant warehouse.

LOGISTICS IN FRANCE

Average headline rents

Regions €35-45 / m² / year excl. taxes and charges

Ile-de-France €48-56 / m² / year excl. taxes and charges

0

0.5

1

1.5

2

2.5

3

20152014201320122011201020092008

5,000 to 20,000 m² > 40,000 m²20,000 to 40,000 m²

LOGISTICS TAKE-UP IN FRANCE (MILLIONS OF M²)


TAKE-UP: 2.9 MILLION M2

28%

26%

24%

5%

20%

1%Specialised distribution

Mass distribution

Logistics companies

24% Other end users (chargeurs)

Internet companies

Pharmaceutical distribution

LOGISTICS USERS IN FRANCE IN 2015 (M²)



SELECTION OF LOGISTICS TRANSACTIONS IN 2015

City (department) Surface area Type of premises User Type of transaction

Bourges (18) 70,000 m² Classe A logistics CARREFOUR Letting

Saint-Bonnet-les-Oules (42) 60,000 m² Warehouse EASYDIS (CDISCOUNT) Owner-occupier sale

Pusignan (69) 59,300 m² Classe A logistics BUT INTERNATIONAL Letting

Cholet (49) 57,000 m² Classe A logistics CARREFOUR Letting

Arras (62) 50,000 m² Classe A logistics ORCHESTRA PRÉMAMAN Letting

LOGISTICS IN FRANCE

A PROPERTY MARKET UNDERGOING GEOGRAPHIC AND TECHNICAL TRANSFORMATIONAlthough the North-South axis remains the top logistics market in France, it does not cover more than 75% of activity, compared with 78% in 2014. Market share for the Ile-de-France rose to 35% this year. With global access through ports at Le Havre and Saint-Nazaire, Pays de la Loire and Normandy continue their development. In another example, CARREFOUR decided to locate a 70,000 m² warehouse at Bourges, in the Centre region. Meeting local demand sometimes plays a smaller role, as suggested by the situation in the Aquitaine, which has not yet broken into the logistics market despite dynamic growth in the Bordeaux metropolitan area. Lastly, the Basel-Mulhouse airport has constructed new facilities intended for freight. It will take time to rebalance French air cargo traffic, 90% of which is dominated by Parisian airports which

2015 LOGISTICS TRANSACTIONS IN THE REGIONS


Regions

Ile-de-France

65%35%

Rhônes-Alpes

Nord Pas-de-Calais

Provence Alpes Côte d'Azur

Centre

Picardie

Lorraine

Bretagne

Pays de la Loire

Haute-Normandie

Others

28%

17%17%

8%5%4%5%

5%4%

7%

have also pursued ambitious investment programs. However, the Eastern regions’ entry to the market affirms that the Lille/Paris/Lyon/Marseille axis is not the only one that counts.

As a general rule, supply is growing scarce along this axis and in the Rhone-Alpes, where all of the new supply was taken up from the start of the year. From the north to the south of France, there are a number of "semi-speculative" and turnkey projects ready to meet strong demand for new logistics platforms. Occupiers also place greater reliance on major European rail lines, roads, maritime links and river routes that connect France with Spain, Italy, Belgium and Germany to better serve their European customers.

It should also be noted that the logistics property market is heavily restricted by regulations, which are increasingly stringent. ICPE standards on classified installations and environmental standards strictly govern projects while allowing specialised investors to develop products that meet the latest technical specifications as well as the expectation of major occupiers, whether shippers or logistics operators.

With the rise of e-commerce and the desire to reduce B to C delivery times, requirements are increasingly specific. The solution resides in warehouse automation and robotisation, which can accelerate the processes. Certain companies prefer to position themselves through turnkey operations that they can shape in their image, even if it means signing a long-term lease to reassure the investor. This trend toward customisation will intensify throughout the year.

The oldest warehouses are less able to meet the selection criteria used by shippers and logistics operators. While renovations may be enough to attract small to medium-sized transport and distribution firms, new trends continue to emerge. Some building units are let under very short-term leases for the occasional storage of surplus goods. At times ageing, warehouses attract the interest of service companies, such as car hire companies, which rely on collaborative consumption and the recent ‘Uberisation’ phenomenon to grow their business.

NORTH-SOUTH AXIS:

75% OF TRANSACTIONSlo

gist

ics

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LOGISTICS IN FRANCE

LOGISTICS HEADLINE RENTS IN 2015 (€ / M² / YEAR EXCL. TAXES AND CHARGES)

120 km

Brussels,Antwerp

Turin, Milan

Genoa, Rome

Santander

Saragossa, Madrid

Barcelona,Valencia

Frankfurt

RENNES

ROUEN

AMIENS

METZ

CHÂLONS-EN-CHAMPAGNE

STRASBOURG

BESANÇON

POITIERS

LIMOGES CLERMONT-FERRAND

PERPIGNAN

MONTPELLIERNICE

41-43

35-40NANTES 34-47

DIJON

40-44LE HAVRE

35-42ORLÉANS

35-45LYON

40-42TOULOUSE

40-42STRASBOURG

35-40BORDEAUX

MARSEILLE

36-43LILLE

48-56PARIS IDF

North-South Axis

Other Markets

7

56

3

1 - MAISONS DU MONDE - 250,000 m² (Saint-Martin-de-Crau)

2 - CARREFOUR - 120,000 m² (Le Coudray-Montceaux)

3 - CASTORAMA - 113,000 m² (Saint-Martin-de-Crau)

4 - SOCARA - 106,000 m² (Villette d’Anthon)

5 - GIFI DISTRIBUTION - 103,000 m² (Miramas)

6 - MAISONS DU MONDE - 96,000 m² (Saint-Martin-de-Crau)

7 - INTERMARCHÉ - 95,000 m² (Vert-Saint-Denis)

8 - AMAZON.FR - 90,000 m² (Lauwin Planque)

9 - CARREFOUR - 80,200 m² (Saint-Gilles)

1

2

4

9

8

MAJOR LOGISTICS TRANSACTIONS IN THE LAST 5 YEARS


AN OUTSTANDING YEAR FOR TAKE-UPAfter three consecutive years of decline, take-up enjoyed a turnaround in 2015. Totalling more than 790,000 m², it rose 6% compared with the average for the decade.

The Seine-Saint-Denis and Val-d’Oise departments remain core markets for light industrial premises. These two areas comprise 40% of total take-up.

In addition, the market has been shifting toward the Outer Suburbs for some time, even into the exurbs of the Ile-de-France. The Essonne has experienced spectacular growth of 59% compared with 2014, following several major transactions. For example, LECLERC DRIVE leased 3,475 m² in Lisses. Conversely, the Val-de-Marne, which is closer to the capital, saw take-up drop by 27%.

Take-up in Paris is higher than in previous years, even though it remains anecdotal. This increase mainly results from the SNCF acquisition of 6,470 m² in the 13th arrondissement. In addition, VOITURES NOIRES signed a lease for 2,500 m² in the 17th arrondissement.

Due to attractive interest rates, owner-occupier sales have regained momentum, representing nearly 40% of take-up in 2015, compared with less than 30% in 2014.

As a result of this strong take-up, supply fell by 11% compared with 2014 and is equal to the average of the past 10 years – i.e., approximately 1.9 million m². It is no surprise that the departments with the greatest supply are Seine-Saint-Denis and Val-d’Oise in the north, and Essonne in the south.

The quality of supply has not improved, with more than 70% in an average state of repair. However, active letting has recently encouraged development. Several new products were delivered during the fourth quarter of 2015, and will certainly arouse interest among tenants.

Rental values have generally remained steady across the various geographic sectors. However, Saint-Quentin-en-Yvelines and Roissy Paris Nord 2 have suffered falling rents, since more storage facilities are leased in that area. Nearly 50% of rents fall between €60 and €100/m², with higher values for new properties. High-tech facilities and laboratories also achieve higher rental values, typically between €100 and €140/m².

LIGHT INDUSTRIAL PREMISES IN THE ILE-DE-FRANCE REGIONNexity Conseil et Transaction tracks the following light industrial premises = SME premises, workshops, storage premises (<5,000 m²) and high tech-laboratories.

One year supply Transactions in 2015 Changevs.

2014

Average headline rental values in € / m² / year excl. taxes and charges

Department Nber Volume Change vs. 2014

Immediate supply Nber Volume SME premises Storage premises

Paris 9 17,100 m² 17,100 m² 17 15,800 m² €146 ND

Hauts-de-Seine 65 94,000 m² 80,900 m² 61 67,900 m² €99 €77

Seine-Saint-Denis 157 281,900 m² 206,800 m² 139 168,700 m² €89 €69

Val-de-Marne 103 179,100 m² 122,200 m² 59 81,100 m² €94 €70

Seine-et-Marne 115 263,900 m² 180,200 m² 85 98,300 m² €78 €47

Yvelines 162 292,300 m² 244,100 m² 71 89,700 m² €74 €53

Essonne 154 345,800 m² 241,500 m² 100 117,400 m² €79 €51

Val-d’Oise 194 430,200 m² 331,200 m² 141 159,400 m² €75 €59

TOTAL IDF 959 1,904,300 m² 1,424 ,00 m² 673 798,300 m² €87 €62

TAKE-UP AND ONE YEAR SUPPLY (MILLIONS OF M²)

Take-up

0

0.5

1

1.5

2

2.5

2015201420132012201120102009200820072006

One year supply



BREAKDOWN OF TRANSACTIONS IN 2015 (M²)

Owner-occupier sales

Lettings

29%17%62%

38%

SEINE-SAINT-DENIS + VAL-D’OISE

= 40% OF TAKE-UPlig

ht in

dust

rial


Average rent (€/m²/year excluding taxes and charges):Average rent is obtained by dividing the total rent per m² by the number of transactions in the sample. These are asking, headline, or transaction rents, not including incentives (rent free periods, paying for fit-out works, etc.) They do not include parking spaces and associated premises.

CBD:Central Business District

CCI: Construction Cost Index (Indice du Coût de la Construction - ICC)

Certain supply / Uncertain supply (m²):Certain supply includes immediate supply, certain departures, supply under construction and construction projects to be launched speculatively. Uncertain supply includes construction projects whose launch is dependent on pre-letting or sale, as well as departure plans not yet confirmed or dependent on external factors (re-letting, search for a new site, etc.).

Core market:Range of headline rents applied to approximately 80% of transactions during the period. However, when references are incomplete, these rents are determined to the best of Keops professionals’ knowledge in order to express a consensual market view.

Corporate real estate:Generic term referring to offices, light industrial premises, logistics buildings and retail premises. However, unless otherwise indicated, land intended for construction of this type of property and hotels are excluded from our definition of corporate real estate.

HQE:High Environmental Quality (Haute Qualité Environnementale)

IGH: High-rise building (Immeuble de Grande Hauteur)

ILAT: Index of tertiary activity rents(Indice des Loyers des Activités Tertiaires)

ILC: Index of commercial rents(Indice des Loyers Commerciaux)

Immediate supply / One year supply (m²): Immediate supply includes all immediately available properties, free of occupants and being marketed. One year supply represents the sum of immediate supply, plus all deliveries and departures planned in the next 12 months. These may result from leases coming to an end or the search for new tenants.

Incentives: Discounts given by owners to tenants, generally through rent-free periods, contributions to renovation works or escalating rents.

Light industrial premises / SME premises: Assembly / production premises, often located in business parks, generally with one or more same level entrances, of a height of at least 3.50m and support offices.

Logistics:A complex with a surface area equal to at least 5,000 m², mainly used for storing goods and managing flows. Buildings are included which are accessed by delivery bays, with turning space for heavy goods vehicles, and headroom of at least 7m. "Grade A" logistics refers to the most qualitative buildings, which are new and/or complying with the latest technical requirements.

Lower rents (€/m²/year): Headline rents for lower quality buildings in secondary locations and/or poor state of repair.

Marketing period (months): This refers to the time taken to let up immediate supply, at a given moment in time, at the current rate of transactions. For the purposes of this study, the rate of transaction is smoothed over the last three years. It is calculated as follows: [Immediate supply / (take-up over three years / 3)] x 12.

Offices:Refer to plots or buildings at least 70% of the surface area of which is used exclusively as offices. Specifically not considered are support offices attached to light industrial premises or a warehouse.

Prime rents (€/m²/year): Top headline rents for high-quality buildings, usually new or restructured, and offering best-in-class space and services in the most praised business districts.

Storage premises (or facilities):Building used mainly for storage with a surface area of less than 5,000 m².

Take-up (m²):Total surface areas of transactions recorded over a given period. It includes rental transactions, owner-occupier sales and projects completed by users for their own occupation. It includes new company moves and extensions. The date of the signing of the lease or the undertaking to sell is taken into account, rather than the date of the user’s physical move or delivery of the building.

Typology of buildings (in particular for offices):The Research Department at Nexity Conseil et Transaction identifies four categories of office buildings: - new buildings, - restructured buildings (major renovations requiring a building permit), which both make up first-hand buildings,- refurbished buildings (subject to more minor works not requiring a building permit),- and second-hand buildings in an average state of repair.

Vacancy rate (as a % of existing real estate stock): Ratio between immediate supply and all existing stock.

Yield (%):Ratio between rent net of all charges and the sale price including acquisition costs, duties and fees.

ZAC: Urban development zone (Zone d’Aménagement Concerté)

Data sources used in this publication:NEXTY CONSEIL ET TRANSACTION databases: Office supply (Logikeops©) and transactions recorded (Osiris©)AFILOG: French Association for Supply Chain and Logistics Real EstateEPADESA: the public development body for La Défense Seine Arche business district.ORIE: Regional corporate real estate observatory, which produces annual statistics on office stock in the Ile-de-France region.Economic information: BANQUE DE FRANCE, ECB, EUROSTAT, EXPERIAN, FEVAD, IMF, INSEE, OECD, OFCE.

TERMINOLOGY

ct.nexity.fr

Nexity Conseil et Transaction provides a full range of global, personalised, effective and innovative services for occupants and owners looking to rent, sell, invest or optimise their property assets: offices - industrial - warehouses - logistics - retail - land. Regardless of your commercial real estate needs, you’ll enjoy the benefits of our expertise and services to ensure the success of your projects, both in France and abroad.

Nexity Conseil et Transaction has 7 locations in France to fully cover the market.

Nexity Conseil et Transaction is the exclusive representative of GVA Worldwide in France. Through this partnership, Nexity Conseil et Transaction supports its clients abroad through a network of more than 154 offices in 26 countries, with nearly 5,800 employees. Bilfinger GVA UK, the network leader, is a subsidiary of Bilfinger, a German group specialising in engineering, maintenance and services for the property market.

CONTACTS :

EXECUTIVE MANAGEMENTVALÉRIE MELLUL, PRESIDENT

INVESTMENT / CAPITAL MARKETSBUILDING DEVELOPMENT CONSULTANCYOLIVIER DE MOLLIENS

PARIS REGION OFFICE BROKERAGEKEY ACCOUNTS MANAGEMENTCORPORATE SOLUTIONSWILLIAM MORELLI

INDUSTRIAL AND LOGISTICS RETAILREGIONSGUY DEFORGE

RESEARCHISABELLE ASSENS

MARKETINGCHLOÉ AMINTAHERI

Offices

Regions

Industrial

LILLE

LYON

MARSEILLETOULOUSE

PARIS

ORLY-RUNGIS

GENNEVILLIERS

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43-47, avenue de la Grande Armée 75116 Paris

+33 1 56 88 92 [email protected]

To find out more about our expertise, our range of services and our values, please visit ct.nexity.fr

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2016 french market report

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