What is the place of reindustrialization in the commercial real estate of tomorrow in Île-de-France?

The work of this study, carried out from October 2023 to May 2024 by the ORIE working group, resulted in a better understanding of the challenges of reindustrialization for corporate real estate and in identifying avenues for improvement to be implemented. The coming years will be decisive. The work of the working group led to eight recommendations covering two parts of the real estate chain: new creations on the one hand, and the reversibility and scalability of existing properties on the other.

For Alain BÉCHADE, Professor Emeritus at CNAM-ICH and pilot of the study: "The reindustrialization of the Île-de-France is an economic, social and environmental necessity. It is time to rethink our development model and focus on innovation, training and collaboration between public and private stakeholders. This study proposes concrete ways to achieve this, in particular by transforming vacant offices into industrial premises, developing rental solutions adapted to the needs of companies and encouraging the construction of mixed and scalable buildings."

The challenges of reindustrialization in the Paris region

The ORIE study reveals that the industry in the Paris region, although dynamic, is facing major challenges. Deindustrialization and the tertiarization of the economy have led to a decrease in the share of industry in regional employment, which now represents only 7,1%, compared to 12,9% on average nationally. In addition, the region is facing a shortage of land and industrial premises that are struggling to adapt to growing demand. The relocation of productive activities, the rapprochement of production areas, consumption areas, the rise of e-commerce and logistics needs nevertheless represent a major challenge in the era of ecological transition.

Opportunities to seize

Despite everything, the study carried out by ORIE takes the side of seeing these challenges as opportunities for industry as well as for real estate in Île-de-France. The region benefits from a dynamic ecosystem, with a pool of talent, research centers and quality infrastructures. The demand for industrial and logistics premises is growing strongly, which represents a development potential for the sector. In addition, innovative solutions are emerging, such as the transformation of vacant offices into industrial premises, the construction of vertical factories and the creation of modern mixed business parks.

ORIE recommendations

To facilitate industrial developments, recommendations have been made, covering the simplification of authorization procedures, the relaxation of urban planning rules, the overhaul of economic models and the reversibility of existing buildings. These measures aim to optimize the use of land, to revitalize unused assets and thus to promote the emergence of a new asset class.

Recommendations for the new creation challenge:

• Responding to a new type of demand from manufacturers
• Limiting abusive recourse to new operations
• Rethinking the economic modalities in order to create these new premises
• Lead to an evolving PLU and a reversal of the burden of proof

Recommendations on the issue of reversibility and scalability:

• Developing the densification of industrial activities
• Improving financing of operations
• Encourage the transformation of vacant buildings for reuse
• Strengthening the attractiveness of hybrid buildings combining several types of activity

For Maxime RABASTÉ, study leader and Deputy Director General for Development and Sustainable Planning, Yvelines Departmental Council: "Local authorities must play a leading role in the development of new industrial spaces (new or converted), by encouraging and ensuring their harmonious integration into the existing urban fabric. Developers – investors – financiers must, for their part, engage in a proactive approach towards this new asset class, reviewing profitability/risk standards in light of the reality of the office real estate market."

The study was conducted by Alain BÉCHADE, Professor Emeritus at CNAM-ICH, and Maxime RABASTÉ, Deputy Director General for Sustainable Development and Planning, Yvelines Departmental Council, and carried out by Sami KHALED, Research Officer at ORIE, under the direction of the State Delegate to ORIE, Smaïn AOUADJ.

Study available on www.orie.fr.