THE MARKET FOR XXL WAREHOUSES IN EUROPE November 2013
XXL WAREHOUSES IN SUPPLY CHAIN CONTEXT 2 Source: CBRE
GENERIC XXL WAREHOUSE FEATURES 3
THE CASE FOR XXL WAREHOUSES The Centralization of Procurement 4
THE CASE FOR XXL WAREHOUSES Decrease of Storage Space Inside Buildings 5
THE CASE FOR XXL WAREHOUSES Changes in Inventory Management Increase of delivery services (faster, with more fluctuations) Mutualization of safety inventories of shop network Decrease of total inventory 6
THE CASE FOR XXL WAREHOUSES Reducing Transport Costs via the Coordination of Deliveries 7
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THE CASE FOR XXL WAREHOUSES Control of Information Flow BIG DATA 9
THE OCCUPIERS PERSPECTIVE Locational Criteria Proximity to producers Government incentives / grants Proximity to customers Labour availability Accessibility / quality of infrastructure 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% XXL Warehouse Advantages Centralisation of operations (100%) Economies of scale (80%) Reduced transport (60%) 10 Source: CBRE
CHALLENGES IN DEVELOPING SITES Environmental issues Finance/funding issues Limited supply of sufficiently well-located sites Planning/permits issues Availability of large enough sites 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 11 Source: CBRE
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EUROPEAN LOGISTICS LOCATIONS 13 Source: Prologis Research
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MARKET FIGURES AND TRENDS
XXL WAREHOUSE TAKE UP IN EUROPE 2010 H1 2013 3,0 2,5 2,0 1,5 1,0 0,5 0,0 2010 2011 2012 2013 H1 2012 and 2013 account for 14% of total year take up 16 Source: CBRE
XXL WAREHOUSES TAKE UP BY COUNTRY 2010 H1 2013 100,0% 90,0% 80,0% 70,0% 60,0% 50,0% 40,0% 30,0% Russia Czech Republic Poland Netherlands Italy Germany France UK 20,0% 10,0% 0,0% 2010 2011 2012 2013 Source: CBRE 17
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XXL WAREHOUSE TAKE UP BY SECTOR 2010 H1 2013 Manufacturing 8% Other 3% Food retail 20% 3PL 22% Online retail 17% Non-food retail 30% Including 3PL s working for contracted customers, overall retail demand could be in excess of 80% 19 Source: CBRE
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CAPITAL MARKETS VIEWPOINT
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XXL WAREHOUSES INVESTMENT DISTRIBUTION 2012 - H1 2013 Turkey 6% Sweden 20% UK 28% CEE 12% France 6% Spain 7% Netherlands 2% Germany 19% Source: RCA 23
INVESTMENT CONSIDERATIONS Account for almost 20% of European industrial market in 2012-13 Additional capital entering the sector through funding of build-to-suits Relationship between size and cost/value not linear Scale and longevity of occupier commitment (10-15 years) due to tenant specific fit-outs costs High average lot size and cost (> 35 m) Degree of specialism, liquidity, re-letting risks potential are negative 24
INVESTMENT CONSIDERATIONS Evidence from Asia-Pac and USA indicates strong demand and pricing Entry yield premium required to compensate Yields are compressing Advantageous for investors o sub 7% in core Western Europe o and low 7% s in core CEE 25
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KEY TRANSACTIONS
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EUROPEAN XXL WAREHOUSE LEASING TRANSACTIONS 2012-2013 Date Location Size (sq m) Occupier Sector Jun-13 Heudebouville, France 53,000 Intermarché Food retail Sep-12 Stryków, Poland 56,000 Leroy Merlin Non-food retail Jun-12 Monticelli, Italy 57,000 Gruppo Scerni 3PL Aug-13 Derby, UK 58,715 Kuehne & Nagel 3PL Feb-13 Milton Keynes, UK 62,710 John Lewis Non-food retail Apr-13 St Joost, Netherlands 77,000 Action Non-food retail Jan-13 Karlsruhe, Germany 85,340 Daimler Manufacturing Feb-12 Reading, UK 86,558 Tesco Food retail Oct-12 Daventry, UK 92,903 Sainsbury plc Food retail Jun-13 Saint-Martin-de-Crau, France 117,000 Castorama Non-food retail 29
DEMANDE PLACÉE* EN FRANCE 3 500 000 m² < 50 000 m² > 50 000 m² 3 000 000 m² 266 000 m² 2 500 000 m² 2 000 000 m² 181 200 m² 486 600 m² 1 500 000 m² 272 600 m² 1 000 000 m² 500 000 m² 0 m² 2010 2011 2012 9M 2013 * Toutes classes (A, B, C, frigorifique et messagerie), en m² Sources : CBRE et Immostat 30
DEMANDE PLACÉE* EN FRANCE 100% 90% 8 % 9 % 22 % 16 % 80% 70% 60% 50% 40% 30% 20% 10% 0% 2010 2011 2012 9M 2013 < 50 000 m² > 50 000 m² * Toutes classes (A, B, C, frigorifique et messagerie), en m² Sources : CBRE et Immostat 31
TRANSACTIONS ENTREPOTS > 50 000 m² EN FRANCE Année Départemen t Commune Surface Preneur 2010 77 Brie Comte Robert 51 215 m² POINT P 2010 62 Hénin Beaumont 62 500 m² BOULANGER 2010 82 Montbartier 67 460 m² INTERMARCHE 2011 13 Fos sur Mer 50 100 m² MAISONS DU MONDE 2011 34 Clermont l Hérault 64 479 m² SYSTEME U 2011 77 St Mard 50 000 m² FRANPRIX 2011 91 Le Coudray Montceaux 50 000 m² ND LOGISTICS 2011 78 Trappes 51 385 m² AUCHAN 2012 77 Vert St Denis 94 331 m² INTERMARCHE 2012 59 Rouvignies 57 062 m² OXYLANE 2012 13 St Martin de Crau 72 872 m² MAISONS DU MONDE 32
TRANSACTIONS ENTREPOTS > 50 000 m² EN FRANCE Année Départemen t Commune Surface Preneur 2012 27 Guichainville 52 335 m² SCHNEIDER ELECTRIC 2012 69 Pusignan 59 452 m² DARTY 2012 59 Lauwin Planque 99 525 m² AMAZON 2012 93 Aulnay sous Bois 51 000 m² SAMADA MONOPRIX 2013 34 Villeneuve les Béziers 68 547 m² INTERMARCHE 2013 13 St Martin de Crau 110 000 m² CASTORAMA 2013 27 Heudebouville 53 000 m² INTERMARCHE 2013 59 Sin Le Noble 74 094 m² GIFI 33
For more information regarding this presentation please contact: Amaury Gariel, SIOR Managing Director CBRE l EMEA Industrial & Logistics T +33 1 53 64 36 85 M +33 6 08 18 39 58 amaury.gariel@cbre.com