'French logistics sector faces further slowdown'

Stephane Croxo, the new head of DTZ's industrial and logistics business in France, talks to PropertyEU about his new role and developments in the market.

Croxo will be responsible for the development of DTZ's industrial and logistics network in France, working alongside Antoine Derville and Marc-Henri Bladier, CEO and managing director of DTZ France respectively.

He will be assisted in his new role by Chantal Hermand, associate director of DTZ Logistics France.

The 40-year old director joins DTZ after a decade devoted to the establishment and development of manufacturing and logistics operations. Croxo previously held the position of sales and marketing director at B.E.G Ingénierie.

PropertyEU: What will be the main priorities in your new role?
Croxo: In order to be a leading player in the logistics space you need to offer an exhaustive coverage of all of the French regions. My priority will be to create a successful and multidisciplinary team on the Lille-Paris-Lyon-Marseille axis and to improve the synergies with the 14 franchises across the country.

PropertyEU: Are there more opportunities today in the logistics segment than in the past?
Croxo: Logistics real estate is a relatively young market, with a history of about 15 years. The year 2000 to 2008 were years of wild development activity in the logistic sector. Construction of logistics platforms was too rapid and penalised the quality and the geographical relevance of the realised projects. The financial crisis put a brake on this irrational construction frenzy. Today, ongoing demand for logistics combined with the obsolescence of the existing platforms, most of which were built in the early 2000s, offer new development opportunities for operators in the sector. We see great years ahead for the French logistics real estate market.

PropertyEU: What are the main trends in the sector?
Croxo: User expectations continue to evolve and are forcing us to professionalise our offering. Knowledge of the logistics processes and of construction techniques are big advantages. The sector is experiencing a slowdown, with take-up of logistics facilities of over 10,000 m2 registering a 36% year-on-year reduction in 2012, amounting to 1.8 million m2. The year 2013 is not expected to be any better, as we expect a further decline in activity in the order of 20% year-on-year.