THE PROPERTY MARKET IN FRENCH REGIONS ANNUAL REPORT

THE PROPERTY MARKET IN FRENCH REGIONS ANNUAL REPORT CB RICHARD ELLIS MAY 2010

THE WORLD S LEADER IN COMMERCIAL REAL ESTATE SERVICES Offices, industrial, logistics, retail, residential, hotels PROJECT MANAGEMENT BROKERAGE LANDLORD REP. BUILDING CONSULTANCY CORPORATE STRATEGIES MARKETING DEBT ADVISORY SERVICES GLOBAL PRIVATE SOLUTIONS BROKERAGE TENNANT REP. CAPITAL MARKET RESEARCH WORKSPACE CONSULTING CORPORATE ADVISORY SERVICES PROPERTY MANAGEMENT VALUATION PORTFOLIO MANAGEMENT 2009 KEY FIGURES FRANCE 94.5 M TURNOVER 714 EMPLOYEES* 31 OFFICES 25 OFFICES IN REGIONS Rennes Vannes Lille Le Havre Rouen Caen Metz Paris Strasbourg Nancy Mulhouse Dijon Limoges Montluçon Annecy Lyon Clermont-Ferrand Bourgoin Jallieu Chambéry Brive-la-Gaillarde Grenoble Bordeaux * excluding affiliates Toulouse Avignon Aix-en-Provence Marseille Montpellier Sophia Antipolis Nice CONTACTS REGION Stanislas LEBORGNE / stanislas.leborgne@cbre.fr Tel.:33(0)153643045/Fax:33(0)153643002 RESEARCH Aurélie LEMOINE / aurelie.lemoine@cbre.fr Tel.:33(0)153643635/Fax:33(0)153644000 Text completed on 22 h April 2010 by the CB Richard Ellis Research department. Written by: Marie-Josée Lopes, Edouard de Laboulaye, Christelle Bastard, Erika Léonard

2 4 8 10 13 CONTENTS ECONOMIC CONTEXT AND OUTLOOK OFFICES - INDICATORS AND ANALYSIS 2009 OFFICES: TRENDS 2010 LIGHT INDUSTRIAL AND WAREHOUSES - INDICATORS AND ANALYSIS 2009 LIGHT INDUSTRIAL AND WAREHOUSES: TRENDS 2010 THE PROPERTY MARKET IN REGIONS 14 ZOOM: THE LOGISTICS MARKET IN FRANCE 16 INVESTMENT 20 GLOSSARY CB RICHARD ELLIS BRANCHES (AFFILIATED AND FRANCHISED) AIX-EN-PROVENCE Philippe LE NORMAND Tel: 33 (0)4 42 60 01 31 Fax: 33 (0)4 42 39 76 77 aix@cbre.fr CHAMBÉRY Xavier TROILLARD Tel: 33 (0)4 79 33 03 30 Fax: 33 (0)4 79 33 03 32 chambery@cbre.fr LYON Thibaut d'anterroches Tel: 33 (0)4 72 83 48 48 Fax: 33 (0)4 37 24 15 10 lyon@cbre.fr NANTES Stanislas LEBORGNE Tel: 33 (0)1 53 64 30 45 Fax: 33 (0)1 53 64 30 02 stanislas.leborgne@cbre.fr SOPHIA ANTIPOLIS Georges BENICHOU Tel: 33 (0)4 93 65 22 54 Fax: 33 (0)4 93 65 47 04 sophia@fici-cbre.com ANNECY Jean-François BERTHIER Tel: 33 (0)4 50 10 22 22 Fax: 33 (0)4 50 10 22 23 annecy@cbre.fr CLERMONT-FERRAND Karine RODDE Tel: 33 (0)4 73 28 78 28 Fax: 33 (0)4 73 28 78 29 contact@atrium-cbre.com MARSEILLE Philippe LE NORMAND Tel: 33 (0)4 96 11 46 11 Fax: 33 (0)4 96 11 46 12 marseille@cbre.fr NICE Léon PIMIENTA Tel: 33 (0)4 93 88 66 58 Fax: 33 (0)4 93 88 68 29 nice@fici-cbre.com STRASBOURG Olivier HEYDT Tel: 33 (0)3 88 37 11 00 Fax: 33 (0)3 88 62 02 77 rivegauche@cbre.fr AVIGNON Pierre MURGUET Tel: 33 (0)4 90 85 96 00 Fax: 33 (0)4 90 85 96 40 avignon@cbre.fr BORDEAUX Alexandre CIEUX Tel: 33 (0)5 56 90 52 30 Fax: 33 (0)5 56 52 24 63 bordeaux@cbre.fr BOURGOIN-JALLIEU Marc GENTY Tel: 33 (0)4 74 43 34 33 Fax: 33 (0)4 74 93 40 78 marc.genty@cbre.fr CAEN Céline FLOREK Tel: 33 (0)2 31 44 73 75 Fax: 33 (0)2 31 28 57 43 caen@cbre.fr DIJON Patrick PEYRUSSIE Tel: 33 (0)3 80 51 71 71 Fax: 33 (0)3 80 51 34 20 dijon@cbre.fr GRENOBLE Hugues de VILLARD Tel: 33 (0)4 76 46 47 00 Fax: 33 (0)4 76 46 71 40 grenoble@cbre.fr LE HAVRE Nicolas CARON Tel: 33 (0)2 35 44 73 75 Fax: 33 (0)2 35 22 99 30 lehavre@cbre.fr LILLE Patrick DUEZ Tel: 33 (0)3 20 21 88 50 Fax: 33 (0)3 20 21 88 51 lille@cbre.fr METZ François SUTY Tel: 33 (0)3 87 18 99 99 metz@cbre.fr MONTPELLIER Martine PATIENT Tel: 33 (0)4 67 50 07 06 Fax: 33 (0)4 67 15 50 38 montpellier@cbre.fr MULHOUSE Jean-Arnaud DESAULLES Tel: 33 (0)3 89 46 20 80 Fax: 33 (0)3 89 46 30 46 desaulles@cbre.fr NANCY François SUTY Tel: 33 (0)3 83 32 86 77 Fax: 33 (0)3 83 32 70 24 nancy@cbre.fr PARIS Stanislas LEBORGNE Tel: 33 (0)1 53 64 30 45 Fax: 33 (0)1 53 64 30 02 stanislas.leborgne@cbre.fr RENNES Hervé KERMARREC Tel: 33 (0)2 23 30 23 30 Fax: 33 (0)2 23 30 23 39 rennes@cbre.fr ROUEN Bertrand BONNET Brigitte AUVRE Tel: 33 (0)2 35 70 73 75 Fax: 33 (0)2 35 07 78 80 rouen@cbre.fr TOULOUSE Michèle BELLAN Tel: 33 (0)5 62 72 44 60 Fax: 33 (0)5 62 72 44 61 toulouse@cbre.fr VANNES Stéphane GRIBIUS Tel: 33 (0)2 97 69 10 00 Fax: 33 (0)2 23 30 23 39 kermarrec.vannes@cbre.fr Photos under Creative Commons 2.0 licence (source: FlickR) Photographers from left to right: Cimm <http://www.flickr.com/photos/schoeters/> Bordeaux tourist home Grégory Tonon <http://www.flickr.com/photos/eriatarka31/> jacme31 <http://www.flickr.com/photos/jacme31/> zigazou76 <http://www.flickr.com/photos/zigazou76/> romainguy <http://www.flickr.com/photos/romainguy/> 1

THE PROPERTY MARKET IN REGIONS ECONOMIC CONTEXT AND OUTLOOK Every region in France has, to a different extent, been affected by the crisis. In 2009, French industry was particularly hard hit with business and employment shrinking in most branches of the secondary sector. The automobile and intermediate goods sectors struggled more than most. Generally speaking, the agri-food and consumer goods sectors resisted the crisis better. Industry in Basse-Normandie, Bourgogne, Champagne-Ardenne, Lorraine and Rhône-Alpes posted harsh annual results, with turnover dropping by 15%. By contrast, and by way of exception, Corsica s employment figures were virtually stable and turnover in the island s industrial sector only shrank by a small amount. Elsewhere, the Midi-Pyrénées was less affected due to the strength of aeronautics in the area. To a lesser extent the business climate also deteriorated in the service sector in some regions, falling by, for example, 11.7% in Lorraine and 8.3% in Rhône-Alpes. To summarise then, the most industrialised regions of France were in the front line and were most affected by the recession, particularly regions where traditional industries predominate. Unemployment in Franche-Comté and Picardie rose steeply in 2009. The job market also deteriorated significantly in Alsace (even though the job market was relatively satisfactory there for several years), Haute-Normandie and Lorraine. Areas with a high proportion of pensioners and a strong service sector, such as the south and west of France including Aquitaine, Bretagne, Languedoc- Roussillon, Midi-Pyrénées and Provence-Alpes-Côte d Azur, performed better than other regions. Ile-de-France resisted well, although the job market deteriorated more quickly than in other parts of France in the 2 nd half of the year. THE MOST DYNAMIC REGIONS Annual variations in GDP Source: CPE via Astérès 2009 2010 (f) Languedoc-Roussillon - 1.5% + 1.1% Provence-Alpes-Côte d'azur - 1.9% + 1.1% Aquitaine - 1.5% + 1.2% Ile-de-France - 2.0% + 1.3% Midi-Pyrénées - 1.6% + 1.4% Corse - 0.9% + 1.4% THE MOST SLUGGISH REGIONS Annual variations in GDP Source: CPE via Astérès 2009 2010 (f) Lorraine - 3.3% + 0.5% Franche-Comté - 3.9% + 0.5% Alsace - 3.2% + 0.6% Champagne-Ardenne - 2.3% + 0.7% Auvergne - 3.2% + 0.8% Basse-Normandie - 2.5% + 0.8% Bourgogne - 2.6% + 0.8% Haute-Normandie - 3.2% + 0.8% Limousin - 2.2% + 0.8% Nord-Pas-de-Calais - 3.1% + 0.8% Picardie - 2.9% + 0.8% In a report published in October 2009, Altarès reported that the rise in the number of business bankruptcies was highest in the northwest, in Alsace and Rhône-Alpes, while businesses in the southwest of France resisted. A SLIGHT UPTURN IN ACTIVITIY EXPECTED IN 2010 In most regions business leaders are very cautious when making predictions for 2010. The general business climate should improve but, on the whole, this faint improvement will not be enough to create jobs. The employment market will therefore continue to deteriorate in the secondary sector. It is also possible that turnover in industrial and building sectors will slump in several regions. On the whole, regions well placed to turnaround in 2010 are those posting strong results for 2009. UNEMPLOYMENT LEVELS IN REGIONAL FRANCE AT 4 TH QUARTER 2009 14% 12% 10% 8% 6% 4% 2% Nord-Pasde-Calais Languedoc- Roussillon Picardie PACA Haute- Normandie Lorraine Champagne- Ardenne Franche- Comté Poitou- Charentes France métrpolitaine Midi- Pyrénées Corse Aquitaine Basse- Normandie Rhône-Alpes Alsace Bourgogne Centre Auvergne Pays de la Loire Ile-de-France Bretagne Limousin Source: INSEE 2

SOCIAL-ECONOMIC PROFILE OF REGIONS Population Population density (in thousand, start 2009) (inhabitant/km 2 ) Annual average GDP population growth by inhabitant 1999-2009 (in %) (2008) Establishments Number of establishments (2007) with > 100 staff Alsace 1,847 223.1 0.6 28,470 100,934 916 Aquitaine 3,200 77.5 1.0 27,562 215,369 1,170 Auvergne 1,343 51.6 0.3 25,630 82,359 564 Basse-Normandie 1,467 83.4 0.3 24,813 82,784 617 Bourgogne 1,637 51.8 0.2 26,427 94,058 746 Bretagne 3,163 116.3 0.9 26,547 176,023 1,380 Centre 2,544 65.0 0.4 26,541 132,897 1,206 Champagne-Ardenne 1,336 52.2-0.1 27,835 70,513 654 Corse 307 35.4 1.7 24,232 29,852 99 Franche-Comté 1,168 72.1 0.4 25,010 64,411 494 Haute-Normandie 1,822 147.9 0.2 27,990 88,460 905 Ile-de-France 11,746 977.9 0.7 47,155 918,002 7,759 Languedoc-Roussillon 2,616 95.6 1.3 23,726 189,956 903 Limousin 741 43.7 0.4 24,794 44,130 307 Lorraine 2,342 99.5 0.1 24,606 114,670 1,047 Midi-Pyrénées 2,865 63.2 1.2 27,384 195,443 1,154 Nord-Pas-de-Calais 4,022 324.0 0.1 24,866 176,702 1,987 Pays de la Loire 3,538 110.3 0.9 27,533 190,259 1,808 Picardie 1,906 98.3 0.3 23,890 86,908 868 Poitou-Charentes 1,759 68.2 0.7 25,259 103,261 730 Provence-Alpes-Côte d'azur 4,940 157.3 0.9 28,949 402,337 1,841 Rhône-Alpes 6,160 141.0 0.9 30,601 422,535 3,137 France métropolitaine 62,469 114.8 0.7 30,746 3,981,863 30,292 THE PROPERTY MARKET IN REGIONS Source: INSEE TRENDS IN BUSINESS BANKRUPTCIES IN 2009 (In % change) FORECAST GDP TRENDS FOR 2010 more than 20% from 10% to 20% from 0 to 10% 1.3% and more from 1% to 1.2% from 0.7% to 0.9% less than 0.7% Source: Heuler Hermes SFAC Source: Astérès 3

THE PROPERTY MARKET IN REGIONS OFFICES INDICATORS 2009 SUMMARY OF OFFICE MARKETS IN REGIONAL FRANCE * 2008 2009 Trend Take-up 1,204,000 sq. m 1,080,000 sq. m - 11% Share of new space 48% 44% - 4 points Immediate supply 1,740,000 sq. m 2,050,000 sq. m + 18% Share of new space 30% 32% + 2 points Definite future supply within 2 years 950,000 sq. m 550,000 sq. m - 42% Prime rents (net/sq. m pa) 300 250-17% Average rent for new or redeveloped space (net/sq. m pa) 165 159-4% Average rent for second hand space (net/sq. m pa) 126 126 stable THE OFFICE MARKET CITY BY CITY *15 MAJOR REGIONAL CITIES IN THE CBRE SAMPLE: Aix-en-Provence / Marseille, Nice / Sophia-Antipolis, Lyon, Lille, Bordeaux, Nancy, Nantes, Strasbourg, Grenoble, Rouen, Metz, Montpellier, Clermont-Ferrand, Rennes, Toulouse. OFFICE STOCK BY REGION (In thousand sq. m) Office stock (low end) Office stock (high end) Ile-de-France 47,099 52,333 Rhône-Alpes 17,750 21,875 PACA 12,034 14,769 Nord-Pas-de-Calais 9,706 11,912 Pays de la Loire 8,499 10,431 Aquitaine 7,343 9,012 Midi-Pyrénées 7,304 8,964 Bretagne 6,950 8,530 Centre 5,941 7,291 Languedoc-Roussillon 5,081 6,235 Alsace 5,036 6,181 Lorraine 4,475 5,492 Haute-Normandie 4,214 5,172 Poitou-Charentes 3,636 4,462 Brourgogne 3,519 4,319 Picardie 3,509 4,307 Basse-Norandie 2,899 3,558 Champagne-Ardenne 2,721 3,340 Auvergne 2,695 3,308 Franche-Comté 2,357 2,893 Limousin 1,472 1,806 Corse 604 741 Total 164,844 196,931 Source: DADS - ORIE Note: following a modification to the sample, previous indicators were recalculated. Immediate supply Share of new space Take-up in 2009 Share of new space Rents for new / redeveloped Rents for second hand at 31/12 (in sq. m) in immediate supply (in sq. m) in take-up at 31/12 ( net / sq. m pa) at 31/12 ( net / sq. m pa) Aix-en-Provence 52,000 26% 33,000 20% 140 / 200 125 / 140 Annecy 47,500 8% 18,300 23% 155 / 190 80 / 170 Avignon 20,000 23% 15,000 55% 140 / 150 80 / 130 Bordeaux 130,000 33% 81,000 47% 125 / 165 108 / 135 Caen 50,000 10% 9,000 20% 125 / 160 80 / 120 Chambéry 21,500 30% 11,000 6% 115 / 145 75 / 135 Clermont-Ferrand 36,000 40% 15,600 60% 110 / 140 70 / 135 Grenoble 115,000 21% 38,400 33% 140 / 170 80 / 115 Le Havre 25,000 15% 17,000 30% 120 / 160 100 / 130 Lille 290,000 35% 139,500 51% 116 / 185 80 / 140 Lyon 396,400 32% 163,800 49% 135 / 246 110 / 200 Marseille 150,000 25% 72,000 28% 130 / 250 90 / 150 Metz 41,000 11% 30,000 30% 110 / 150 80 / 130 Montpellier 68,000 40% 59,000 40% 135 / 150 90 / 140 Mulhouse 56,000 17% 14,900 44% 110 / 170 50 / 165 Nancy 46,900 29% 38,700 24% 130 / 160 85 / 160 Nantes 80,000 50% 80,000 60% 120 / 175 85 / 150 Nice 38,000 68% 26,000 38% 180 / 200 110 / 180 Rennes 107,000 35% 56,000 15% 150 / 180 120 / 160 Rouen 81,310 21% 34,290 20% 130 / 150 51 / 120 Sophia-Antipolis 55,000 19% 16,000 28% 180 / 230 120 / 180 Strasbourg 174,800 23% 57,900 42% 125 / 200 75 / 155 Toulouse 192,400 40% 135,000 69% 125 / 170 95 / 150 4

OFFICES ANALYSIS 2009 Occupier interest weak in 1 st half The number of occupier requirements and the amount of space required fell in regional France* as players waited to see what the future held in store, immobilising some markets. Simultaneously, a wave of lease renegotiations took place in all markets, which enabled tenants to reduce their overheads quickly and landlords to secure their future income. We observed a slight increase in occupier interest from September onwards, illustrating how keen some occupiers were to get back on track with their real estate projects, although many of these projects were less ambitious or were rescheduled to a later date. The sliding real estate market levels out Regional office markets continued to follow a downward trend, dropping 17% in 2008 then 11% in 2009, reflecting, albeit to a lesser degree, trends in the Ile-de-France (down 24%). The 1 st half was very slow but then activity picked up in the most dynamic regions in the 2 nd half, resulting in a total take-up for the year of 1.08 million sq. m. The situation in regional markets varied enormously, however, and how well they fared during the crisis largely depended on the structure of their economic fabric and supply levels. For instance, regions where traditional industries predominate were very disrupted while those with a substantial supply of new space generally resisted well. In 2009, the office market was for the most part fuelled by public and semi-public sectors. In regions where international and private sector companies bolster take-up, markets ran into difficulties. Transactional activity was above all composed of deals on small units that met the needs of occupiers in periods of tough restrictions. The most severely affected size bracket was that of large office transactions; many transactions of this type and size were cancelled or suspended. The situation is expected to improve in 2010 as and when visibility and the economy improve. TRENDS IN IMMEDIATE SUPPLY AND TAKE-UP IN THE 15 MAJOR REGIONAL CITIES * (In million sq. m) 2.5 2.0 1.5 1.0 0.5 99 00 01 02 03 04 05 06 07 Take-up Immediate supply 31/12 BREAKDOWN OF TAKE-UP BY CONDITION OF PREMISES* (In million sq. m) 1.50 1.25 1.00 0.75 0.50 0.25 99 00 01 02 03 04 Second hand 05 06 New 07 08 08 09 09 THE PROPERTY MARKET IN REGIONS SELECTED TRANSACTIONS 2009 Address - programme Tenant/buyer Floor area Type of Condition of Annual rent or price (sq. m) contract premises ( net of tax or duties / sq. m) Toulouse, ZAC Basso-Cambo ERDF 11,600 Lease New N.C. Nancy, Station CUGN 8,910 Sale Second hand 1,430 Lyon, Confluence - Monolithe GDF 8,300 Lease New 210 Rennes, Champeaux Dreal 5,500 Lease New N.C. Nantes Fidelia 5,400 Lease New 172 Bordeaux, Ilôt B Batisde Pôle emploi 5,185 Lease N.C. N.C. Montpellier, Parc du Millénaire Orange 4,000 Lease New N.C. Lille, Euralille EDF 4,000 Lease Recent 175 Strasbourg Centre, Les Halles Esca 4,000 Sale Second hand N.C. Marseille GAN 2,800 Lease Used condition N.C. Rouen, La Breteque Bois-Guillaume AMNSN 2,200 Sale New N.C. Grenoble, Bouchayer Viallet Territoires 38 1,600 Lease New 155 Sophia-Antipolis IDRAC 1,200 Lease New 174 Metz, Ecotech Technopôle GMF 800 Lease New 120 Sources: CB Richard Ellis and Explore foresight N.C.: Not Communicated 5

THE PROPERTY MARKET IN REGIONS Cities can be roughly divided into four groups by their functioning and performance: international cities, like Aix-en-Provence and Sophia-Antipolis, with drops in take-up of respectively 34% and 33%, have markets attracting an international and/or private clientele and these cities have been severely affected by the crisis; conventional cities, like Nantes, Lyon and Rennes, where take-up fell by 18% to 30% in take-up, much like Paris; resistant cities, like Lille (down 14%), that have traditional markets where the public and semi-public sector continued to bolster activity; high performance cities such as Toulouse and Marseille, that benefited from good growth (respectively 10% and 31%) partially due to their specific economic structures: Toulouse has a strong aeronautics sector that has not been affected by the crisis and Marseille is an important administrative centre. In general, the rate of lettings and acquisitions accelerated in 4 th quarter 2009, leading us to predict 2010 will be a year of convalescence. STATE OF SUPPLY AND TAKE-UP AT 31/12/09 (In thousand sq. m) 800 600 400 200 Immediate new supply Definite future supply for completion in 2010 Definite future supply for completion in 2011 Probable future supply Take-up of new space 2009 Despite the economic climate, occupiers in every market clearly prefer new space as it accounts for 44% of take-up. Asubstantialshare was taken by acquisitions, turnkey schemes and own-account developments because when times are hard such arrangements are a good alternative, especially when there is insufficient available supply or it is ill adapted to needs. The development of green buildings for occupiers, asmandatedby the Grenelle laws, is still in its infancy but such buildings provide domestic and international occupiers with a marketing tool and demonstrate their lead in environmental responsability. The first green buildings bearing one of several labels - HQE, LEED, BREEAM, BBC, or THPE have been completed in the provinces in 2009 and 2010 or will be by the end of the year. Immediate supply grows and pressure on new supply Immediate supply, showing a year-on-year rise of 18%, stood at 2.05 million sq. m at the end of 2009 with new space accounting for 32%. The rise in the volume of immediate supply will meet short term needs but will not be sufficient to prevent the deterioration in the quality of vacant office space gathering pace in the medium term as the number of new developments due in the months ahead dries up. The obsolescence of the regional office park will push owners to choose between selling and renovating their assets to avoid or reduce voids. The amount of space that will definitely be developed in the two years ahead has declined to an estimated 550,000 sq. m. This trend could accentuate in 2010 and will probably reverse once the effects of the crisis have been reabsorbed and there is a more tangible need for quality space. Toulouse and Lyon currently have the most projects on the way to being completed in 2010 with just short of 80,000 sq. m each. But even they follow the more widespread trend of falling definite future supply with the amount of development plummeting in 2011, when no buildings are expected in Toulouse and only 22,000 sq. m are due in Lyon. SUPPLY AND TAKE-UP OF NEW SPACE (In thousand sq. m) 660 550 440 330 220 110 05 06 Take-up of new space 07 Definite supply for completion within a year DEFINITE FUTURE SUPPLY (In thousand sq. m) 100 80 60 40 20 Lyon Nantes Toulouse Aix / Marseille Rennes Montpellier Nice / Sophia 08 09 Immediate new supply (end of year) Nancy Lille Metz Bordeaux Grenoble Clermont-Ferrand Completions 2010 Completions 2011 Strasbourg Rouen 6

Lyon has an office stock that is large enough to absorb the new developments arriving in 2010, but Toulouse, Nantes and Rennes do not and will be over supplied in 2010. Aix-en-Provence/Marseille will also have a relatively high amount of available space. However as new space is frequently scarce, this so-called abundance will no doubt provide an opportunity for many companies to finally move to good quality, well situated offices with acceptable financial conditions. Other markets such as Lille, Le Havre and Grenoble will, by contrast, be under supplied in new space from 2010 and this may reduce transactional activity. To conclude, situations from one market to the next vary. But it is worth noting that markets with good value quality space will be more reactive to an upturn. Protect headline rents as much as possible In contrast to Paris, the fall in rental values did not really take place in regional France. Commercial concessions such as rent-free periods and landlord-paid works were more frequent and bigger and often kept headline rents stable. The average rent for new and redeveloped buildings, products that were the exception rather than the rule, still fell by 4% to reach 159 net /sq. m pa at the end of 2009 compared to 165 at the end of 2008. By contrast, average rents for second hand space, which is more characteristic of the market as a whole, were stable at 126 net/sq. m pa. This slight fall can be explained by landlord s determination to keep headline rents high as well as by the low number of transactions. In most markets, there were so few transactions that no real adjustment in rent could take place. This is why a real drop could be seen in 2010 as and when market activity recovers. We are also expecting to see a more logical spread of rents across geographical sectors. THEORETICAL MARKETING PERIOD IN THE 15 MAJOR REGIONAL CITIES* (In years) 2.00 1.75 1.50 1.25 1.00 0.75 0.50 0.25 96 97 98 99 00 01 02 03 04 TRENDS IN RENTS IN THE 15 MAJOR REGIONAL CITIES* (In net /sq. m pa) 300 250 200 150 100 50 99 00 Prime rent 01 02 03 Second hand average rent 04 05 05 06 06 07 07 08 08 09 09 New average rent THE PROPERTY MARKET IN REGIONS SUMMARY OF OFFICE MARKET IN REGIONAL FRANCE Prime Annual Average rent for Annual Average rent Annual rent trend new/redeveloped space trend for second hand trend Aix-en-Provence / Marseille 250-17% 190 + 21% 145 + 21% Bordeaux 165 + 9% 145 + 13% 122 + 13% Lille 185-3% 151-4% 110-4% Lyon 246-5% 191-2% 155-2% Nantes 175 + 2% 148-2% 123-2% Nice / Sophia-Antipolis 230 + 5% 205-19% 145-19% Strasbourg 200 = 163-8% 115-8% Toulouse 170-6% 148-2% 123-2% N.C.: Not Communicated 7

THE PROPERTY MARKET IN REGIONS POSITION OF OFFICE MARKETS IN REGIONAL FRANCE AT END 2009 Average rent for new space in net/sq. m pa 230 210 190 170 Rennes Nice / Sophia-Antipolis Grenoble Aix-en-Provence / Marseille Toulouse Lyon 150 130 Nancy Montpellier Metz Rouen Nantes Bordeaux Strasbourg Lille Clermont-Ferrand Immediate supply in sq. m 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 The size of bubbles is proportional to the take-up volume OFFICES TRENDS 2010 2010 will be a year when rents are adjusted In contrast to 2009, the downward rent trend was clearly visible at the start of 2010 and the adjustment has already started taking place in most cities. Headline rents will stabilise in many cities by the end of the 1 st quarter under the influence of commercial concessions, but no one doubts that a fall in the real cost of renting will be an indispensable process before the pace of transactions can accelerate. Take-up 2010 Increase Stability Decrease Definite supply for completion in 2010 and 2011 Surplus Rouen Sophia-Antipolis Nice - Toulouse Aix-en-Provence Bordeaux Annecy Balance Clermont-Ferrand Chambéry Montpellier Lyon - Marseille Under supply Grenoble - Lille Strasbourg - Rents Increase Stability Decrease Bordeaux Aix-en-Provence Chambéry - Rouen Montpellier Toulouse Grenoble Annecy - Lille - Nice Clermont-Ferrand Lyon - Marseille Sophia-Antipolis Strasbourg 2010 will be a year when real estate projects and moves are back on the agenda 2010 will see the resurgence of moves even though this will not happen to the same extent and simultaneously in all regions. The improvement in economic indicators seen since mid-2009 has reassured players. These have put real estate projects back on the agenda and more occupiers will see them through to conclusion quickly now that rents and prices are in the process of being readjusted. In the 1 st quarter 2010, the majority of regions posted more transactional activity. Those that saw a drop in activity tended to be ones that were very busy and/or on the rise in 2009 like Toulouse, Montpellier or Nice. Will there be enough new supply in 2010? Supply in the pipeline for 2010 appears to be quite well balanced with the market in the 1 st quarter. Declining supply rates triggered a degree of concern, which will only be taken into consideration when the upturn in transactional activity is truly confirmed. And what about 2011? Virtually no speculative development has taken place since the middle of 2008 and this will lead to a scarcity of quality space from 2011 onwards in many regions. The quality of supply in regional France, already considered poor, is clearly under threat. 8

Key: Take-up 2010 Rents 2010 Future supply for completion in 2010 and 2011 Up Stable Down Excessive Adapted Insuffisant Annecy Demand down. Bordeaux Shortage of supply in the town centre. In the outskirts, office buildings attract occupiers. Supply is expected to diminish in 2010. The shortage will be felt in 2010. Only the western outskirts are slightly over supplied. Chambéry The market is quite well balanced. We are, however, aware that some businesses may run into difficulty this year and vacate space. Clermont-Ferrand More projects are coming to light and moving forward more quickly than in 2009. For the most part these are schemes above 1,000 sq. m with planning permission. Rents for second hand space were lowered to attract occupiers more quickly for average units of 200 sq. m. Grenoble A market with high supply levels even for new space. But only two developments due in 2010. A shortage will be felt in 2011. Sophia-Antipolis Take-up at same level as in early 2009. But market values are 10% to 15% lower. Rennes Le Havre Rouen Orléans Lille Lyon Strasbourg Annecy THE PROPERTY MARKET IN REGIONS Bordeaux Clermont-Ferrand Toulouse Montpellier Aix-en- Provence Chambéry Marseille Grenoble Nice Sophia-Antipolis Lille The Lille market was active in the 1 st quarter with take-up reaching 33,500 sq. m (excluding turnkey and own-account schemes). However a proportion of this amount was due to a few large deals. There were many small transactions, but a shortage of supply in the 250 to 1,000 sq. m bracket. Approximately 51% of requirements are for new space, which, given today s almost total absence of construction, means there will be pressure on the market in the future. Deals are taking longer and longer to conclude and landlords are in a quandary about how to react to the growing vacant supply of out-of-date space. Immediate supply fell slightly in the 1 st quarter, as did the amount of space due out of the pipeline in the next twelve months. Prime rents climbed back to 190 net/sq. m pa. Generally speaking, headline rental values have been protected by the use of commercial concessions. Lyon Activity in 1 st quarter 2010 followed on logically from 4 th quarter 2009 and there was a slight improvement in take-up. Some 58,700 sq. m were let or sold in the 1 st quarter compared to 38,000 sq. m in the same period in 2009, a 78% rise. Available supply, already high, rose again to 407,000 sq. m at the end of March 2010. There is a high proportion of second hand space in supply and a shortage of new space in the most popular business sectors. The prime rent fell to 230 net/sq. m pa and there is very little difference between asking rents and finally negotiated values. For very large transactions with long lease periods, however, negotiations frequently result in the tenant obtaining a month s free rent for each year of unbreakable lease term. Marseille There was a rise in activity in the office market in Marseille. In 1 st quarter 2010, take-up showed a 66% rise on 2009 s 1 st quarter figures to stand at 20,000 sq. m. Despite the crisis, there has been a rise in transactional activity since the 4 th quarter 2009. The supply of available space has stabilised at 156,000 sq. m. Virtually no new developments will take place until 2011 even though the amount of space due in 2010 is substantially lower than 2009 s figure (22,000 sq. m compared to 50,000 sq. m). The prime rent remained at 250 net/sq. m pa. On the whole, headline values were stable but rent holidays were granted for occupiers with large demands (one month minimum for each year of lease). 9

THE PROPERTY MARKET IN REGIONS LIGHT INDUSTRIAL SPACE AND WAREHOUSES INDICATORS AND ANALYSIS 2009 SUMMARY OF LIGHT INDUSTRIAL AND WAREHOUSE MARKETS IN REGIONAL FRANCE* 2008 2009 Trend Take-up 3,300,000 sq. m 2,600,000 sq. m - 23% Share of new space 43% 39% - 4 points Immediate supply 3,620,000 sq. m 4,080,000 sq. m + 13% Share of new space 23 % 22 % - 1 point Speculative space in pipeline 730,000 sq. m 270,000 sq. m - 63% Semi-speculative future supply 1,220,000 sq. m 800,000 sq. m - 34% Prime rent (net/sq. m pa) 110 110 Stable Average rent for new space (net/sq. m pa) 61 57-7% REGIONAL CITIES IN THE SAMPLE *15 MAJOR REGIONAL CITIES IN THE CBRE SAMPLE: Aix-en-Provence / Marseille, Nice / Sophia-Antipolis, Lyon, Lille, Bordeaux, Nancy, Nantes, Strasbourg, Grenoble, Rouen, Metz, Montpellier, Clermont-Ferrand, Rennes, Toulouse. THE MARKET FOR LIGHT INDUSTRIAL PREMISES AND WAREHOUSES CITY BY CITY Regional cities Immediate supply Share of new space Take-up Share of new space Rents for new / redeveloped Rents for second hand at 31/12 (in sq. m) in immediate supply in 2009 (in sq. m) in take-up at 31/12 ( net / sq. m pa) at 31/12 ( net / sq. m pa) Aix-en-Provence 385,000 54% 191,000 58% 41 / 100 30 / 70 Annecy 135,200 N.S. 54,900 30% 70 / 90 37 / 65 Bordeaux 271,530 N.D. 116,200 40% 43 / 78 35 / 69 Caen 200,000 5% 65,000 15% 45 / 55 35 / 45 Chambéry 63,000 9% 45,000 20% 55 / 75 30 / 55 Clermont-Ferrand 80,000 1% 30,500 17% 45 / 70 20 / 60 Grenoble 156,000 7% 100,300 9% 74 / 85 35 / 65 Le Havre 170,000 51% 22,000 24% 60 / 70 35 / 60 Lille 514,000 41% 443,000 72% 41 / 55 30 / 50 Lyon 1,013,000 19% 640,600 41% 37 / 65 25 / 60 Marseille 102,000 6% 61,000 = N.S. 60 / 110 45 / 65 Metz 220,000 3% 80,000 N.S. 45 / 65 15 / 50 Montpellier 55,000 12% 49,300 6% 75 / 85 42 / 65 Mulhouse 232,700 3% 87,300 45% 45 / 110 20 / 100 Nancy 98,000 19% 58,000 9% 50 / 65 18 / 60 Nantes 100,000 N.D. 95,000 N.D. 60 / 80 N.S. Nice 90,000 N.S. 65,000 N.S. 70 / 80 N.S. Rennes 128,000 20% 110,700 17% 36 / 70 20 / 60 Rouen 98,000 23% 108,000 1% 42 / 60 25 / 60 Sophia-Antipolis 40,000 N.S. 16,000 12% 85 / 100 65 / 85 Strasbourg 580,100 11% 206,600 47% 48 / 95 28 / 85 Toulouse 146,600 21% 142,700 1% 43 / 90 30 / 35 N.D.: Not Determined N.S.: Not Significant 10

LIGHT INDUSTRIAL SPACE AND WAREHOUSES Occupier interest transforming Occupier interest in light industrial space and warehouses was profoundly affected by the crisis in 2009. One of the year s features was the freeze on real estate projects with occupiers preferring to adapt existing space. This approach allowed them, first, to keep business activity running while limiting the amount of storage space needed, and second, to avoid the more costly moving process. Occupiers often sought small or medium-sized new, modular premises with good accessibility and at a reasonable price. In contrast to the office market, there was no sign of a pickup in activity in light industrial and warehouse markets at the end of 2009. Significant fall in activity in 2009 As expected, in 2009 the crisis led to total disarray in the industrial and warehouse market leading to a fall in market activity and a turnaround in trends. At 2.6 million sq. m, take-up fell by 23% on 2008 s results of 3.3 million sq. m. In our sample of cities, only four saw any rise: Grenoble, Rouen, Toulouse and Montpellier. They posted annual growth rates in their level of take-up of between 6% and 13%. The majority of markets saw a substantial slide, except Clermont-Ferrand where the fall was just 5%. Why move and into what premises? Cutting costs was the leitmotif for occupiers in the market in 2009. Many real estate projects were put on standby or downscaled, which generated mainly small transactions. In general the segment of mediumsized transactions slumped and the market often depended on a few large transactions. But even these transactions were smaller than in previous years: the number above 20,000 sq. m dropped, making way for more transactions between 5,000 and 20,000 sq. m. Occupiers were still very keen to acquire their own premises in regional France, a trend reinforced by the crisis, as acquisitions give occupiers more control over their real estate expenditure. Acquisition is also the default option when there is a shortage of suitable premises, a common situation in recent months because virtually no speculative development has taken place. Regional markets are still under supplied in premises for sale. TRENDS IN IMMEDIATE SUPPLY AND TAKE-UP IN THE 15 MAJOR CITIES * (In million sq. m) 5 4 3 2 1 96 97 98 99 00 01 02 03 Immediate supply at 31/12 Take-up in the year BREAKDOWN IN TAKE-UP BY STATE OF PREMISES* (In million sq. m) 3.5 3.0 2.5 2.0 1.5 1.0 0.5 2005 2006 TRENDS IN TAKE-UP IN 4 MARKETS (In thousand sq. m) 1,000 2007 Second hand 04 05 2008 New 06 07 08 2009 09 THE PROPERTY MARKET IN REGIONS When sufficient supply was available, especially when there was enough new space on the market, the share of acquisitions rose in 2009 because buying gives the buyer more security against uncertainty in the economy and regulatory changes. The share of turnkey and own-account schemes amounted to almost 30% of take-up in each market and exceeded 50% in Lille and Toulouse (see graphs). The specificity of each market made occupiers more demanding as they only moved when they could buy a new building if possible. If no new buildings were available, they would choose the one with the fewest defects, transforming the premises if necessary to make the most out of it. In Nice, for instance, the scarcity of supply is an on-going problem and was as much a dampener on the level of take-up as the economic crisis. 800 600 400 200 Lyon Lille Strasbourg Aix-en-Provence / Marseille 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 11

THE PROPERTY MARKET IN REGIONS The share of new space in take-up fell to 39%. Although new premises are highly sought, they are also very scarce which has hindered the pace of take-up. Most of this take-up of new premises is composed of turnkey schemes and own-account schemes. In 5 markets the share of new take-up was above 40%, in descending order: Lille, Toulouse, Aix/Marseille, Strasbourg and Lyon. These are fairly mature markets and could benefit from this situation if market activity picks up again in 2010, as long as buildings are available that meet occupiers expectations. Most market activity in 2009 for light industrial premises and warehousing stemmed from businesses regrouping sites and trying to cut costs through economies of scale. The logistics sector, by definition a consumer of large premises, was quite slow in 2009. Poor visibility and the interruption of new development prevented it from starting up again (see zoom on page 14). Immediate supply rose again and future supply shrinks SHARE OF TURNKEY AND OWN-ACCOUNT SCHEMES IN TAKE-UP IN 2009 Grenoble Montpellier Clermont-Ferrand Nancy Aix/Marseille Lyon Strasbourg Toulouse Lille 0 10% 20% 30% 40% 50% 60% Available supply, estimated at 4.08 million sq. m at end 2009, continued rising showing year-on-year increases of 24% from 2007 to 2008 and 13% from 2008 to 2009. All cities in the sample*, except Nice/ Sophia- Antipolis, Rouen and Montpellier, posted higher supply levels. The amount of new space available varied little at 22% of available supply because few speculative schemes were completed in 2009. New space is not always suitable for demand. Some new schemes are in industrial parks that are unpopular with occupiers (but where there is land available), some are considered too expensive, and in other cases the space is simply inappropriate. SUPPLY (IMMEDIATE, FUTURE) AND TAKE-UP OF NEW SPACE (In million sq. m) 1.50 1.25 1.00 0.75 0.50 Markets in which suitable space does not match demand qualitatively or quantitatively will probably see their situation worsen with fewer appropriate developments taking place. At the end of 2009, the supply of speculative space due in 2010 stood at 270,000 sq. m, a 63% fall on the previous year s figure. Semi-speculative supply also followed a downward trend, dropping 34% since end 2008 to 800,000 sq. m. Possible future development rose some 1,500,000 sq. m could be built but in the medium term very little is likely to be completed. 0.25 New immediate supply end 2008 New immediate supply end 2009 Speculative supply end 2008 Speculative supply end 2009 Semi-speculative supply end 2008 Semi-speculative supply end 2009 Take-up of new space 2008 Take-up of new space 2009 In 2009, occupiers once again turned to turnkey and own-account schemes to compensate for the lack of supply. But the market is often handicapped by the lack of buildings to let. Rent trends shift Average rents for new or redeveloped light industrial space and warehouses have been rising slightly since 2003, but they fell by 7% in 2009. The average rent stood at 57 net /sq. m pa at the end of 2009 compared to 61 net/sq. m pa at the end of 2008. The majority of markets posted drops in market values even though many owners grant concessions such as rent-free periods and paid works. The prime rent in regional markets* was stable at 110 net/sq. m pa (in Marseille). The second highest rent could be seen in Sophia-Antipolis and Aix-en-Provence at 100 net/sq. m pa. In some markets there were so few transactions it was impossible to assess the true level of rental and open market values. In 2010 price movements will be more visible, albeit slight in the industrial market. AVERAGE WEIGHTED AND PRIME RENTS FOR NEW LIGHT INDUSTRIAL SPACE AND WAREHOUSES IN REGIONAL MARKETS* (In net/sq. m pa) 120 100 80 60 40 20 00 01 02 Average weighted rent for new or redeveloped space Prime rent 03 04 05 06 07 08 09 12

SELECTED OF TRANSACTIONS 2009 Address - programme Tenant / buyer Floor area Type of Type of Condition of Annual rent or price (in sq. m) premises contract premises (in net of tax or duties / sq. m) Lille - Brebières ID Logistics 72,000 Warehouse Own-account New N.C. Toulouse - Blagnac Airbus 53,000 Light industrial Own-account New N.C. Lyon - Belleville Hartmann 44,000 Warehouse Lease New N.C. Aix-en-Provence/Marseille - Clesud - Miramas Point P 38,600 Warehouse Lease New N.C. Le Havre - Parc logistique du pont de normandie SLAUR 11,500 Warehouse Lease New N.C. Grenoble - Pont de Claix Imprimerie de Pont de Claix 10,400 Light industrial Sale Second hand 200 Mulhouse - ZI Bartenheim SAT 9,200 Warehouse Sale Recent N.C. Metz - ZAC Grange au Bois SPIE 6,000 Mixed Lease New N.C. Strasbourg - Furdeheim Velta Eurojauge 4,050 Light industrial Sale New N.C. Nancy - Marcel Brot Futsal 2,500 Light industrial Lease Renovated 60 Nice/Sophia -Antipolis - Pegomas Vir 2,000 Light industrial Lease New 92 Annecy - ZI de Vovray GLS 1,900 Warehouse Lease Second hand N.C. Clermont-Ferrand - Brezet Interouge.com 1,800 Light industrial Lease Second hand 34 Rouen - Dieppedalle Croiset EPB 1,400 Light industrial Lease Second hand 16 Caen - Mondeville Calixo event 800 Light industrial Lease Recent 32 THE PROPERTY MARKET IN REGIONS Sources: CBRE, Explore foresight N.C.: Not Communicated LIGHT INDUSTRIAL SPACE AND WAREHOUSES TRENDS 2010 Key: Take-up 2010 Rents 2010 Future supply for completion in 2010 and 2011 Lille Up Stable Down Excessive Adapted Insuffisant Light industrial Warehouse Annecy Demand has resisted but there is insufficient supply and what exists is poor quality. Despite the economic climate, few new properties have come on stream. The market is therefore watching and waiting. Bordeaux Few new schemes but many second hand properties. There is a big gap between rents for new space and second hand space. But occupiers have to reduce costs so finding tenants for new schemes is difficult. Clermont-Ferrand Moves continue at the same pace as end 2009, at values that could not be adjusted for second hand space. There was an increasingly obvious shortage of new space. Grenoble Industrial markets are under pressure due to the lack of buildings, especially ones for sale. Toulouse Large commercial concessions are frequently granted. Most occupiers are seeking light industrial space and there are few requirements for warehousing. The supply of industrial space is poor quality or does not comply with standards in force. Rennes Bordeaux Toulouse Orléans Rouen Lyon Clermont-Ferrand Annecy Chambéry Montpellier Marseille Aix-en-Provence Strasbourg Grenoble Nice Sophia- Antipolis N.S.: Not Significant 13

THE PROPERTY MARKET IN REGIONS ZOOM: THE LOGISTICS REAL ESTATE MARKET IN FRANCE (WAREHOUSE > 10,000 SQ. M Regional markets hit hardest by the crisis Following the turnaround seen in 2008 in the French logistics market, when take-up stood at 2.5 million sq. m, the market sank in 2009, dropping by 41% to 1.5 million sq. m. At the start of 2009 some transactions initiated much earlier were finalised, then the amount of space let or sold fell steadily as the year rolled on. The 4 th quarter was the slowest with take-up dropping 22% in three months to total just 307,000 sq. m in 16 transactions, the lowest quarterly result for several years. The majority of transactions concluded in 2009 were located along the main north-south road axis: 22% in Ile-de-France, 17% in the north, 16% in the Rhône corridor and 12% in the south. This distribution of transactions is quite different to 2008, when 25% were concentrated in the Rhône corridor, followed by the north with 23%, and Ile-de-France coming third with 18%. The south only accounted for 9% of transactions. TRENDS IN TAKE-UP IN FRANCE (In million sq. m) 3.0 2.5 2.0 1.5 1.0 0.5 00 01 02 03 Regions Sources: CB Richard Ellis and Immostat 04 05 06 07 08 Ile-de-France 09 Q1 10 In 1 st quarter 2010, this ranking changed yet again. In Ile-de-France, take-up showed a year-on-year rise of 173% to stand at 304,000 sq. m, or 52.5% of transacted volume, while other markets are still depressed. BREAKDOWN OF TRANSACTIONS BY SIZE BRACKET IN FRANCE 100% The three main logistics regions did not show any signs of improvement, except the Greater North. Here, in the 4 th quarter 2009, no significant transaction was identified, but take-up showed a year-on-year rise for the 1 st quarter of 28% to reach 83,800 sq. m. Out of five transactions, four were in the 10,000 sq. m to 20,000 sq. m bracket. An example is the letting by DHL of 11,400 sq. m in Loon Plage (59) or the purchase by Haenens Transports of 14,300 sq. m in Fretin (59). The transactions on small floor areas also contributed to the decline in total floor area transacted in regional France. 80% 60% 40% 20% 2008 2009 10,000 sq. m - 20,000 sq. m Q1 2010 Take-up in the Rhône corridor fell sharply in a year, notably because transactions on units smaller than 10,000 sq. m represented more than 57% of take-up, for example the letting by Schenker-Joyau of 5,000 sq. m in Mions (69). The sole operation carried out by a consignor in the zone is the letting by Smoby of 5,200 sq. m in La Boisse (01). > 50,000 sq. m Sources: CB Richard Ellis and Immostat 20,000 sq. m - 50,000 sq. m As for the Greater South, the level of take-up of warehouses above 10,000 sq. m was low again (33,400 sq. m or a 46% reduction compared to 1 st quarter 2009) and the region only accounted for 6% of the national total in that bracket. Here, as in the Rhône valley, there were more transactions under 10,000 sq. m than over 10,000 sq. m and these equalled 60% of all logistics take-up in the region compared to 38% in 2009. Finally, the share of consignors in transactions stood at 55% for the 1 st quarter 2010 due to the level of activity in the distribution sector. In contrast to Ile-de-France, the quality of buildings has been falling in regional markets: the share of new, redeveloped or renovated warehouses dropped from 79% in 2009 to 59% in 1 st quarter 2010. GEOGRAPHIC BREAKDOWN OF TAKE-UP AT 1 ST QUARTER 2010 (In volume) Greater East 10% Greater North 14.5% Sources: CB Richard Ellis and Immostat Greater South 6% Rhône corridor 6% Greater West 4% Centre 3% Bourgogne 2% Normandie 2% Ile-de-France 52.5% 14

Supply still rising Immediate supply rose sharply in 1 st half 2009, then stabilised in the 2 nd half. In the year from 1 st January 2009 supply rose by 44% to 3.3 million sq. m in France. At the beginning of 2009, several speculative developments that had started in 2008 were completed, thereby pumping up supply, in addition to which second hand premises vacated in the course of the year came on the market. Later, as developers curbed new building, supply stabilised. At 1 st April 2010, immediate supply had risen again, but to a lesser extent (up 16% since 1 st January 2010). The rise in supply essentially occurred in the provinces: supply in Ile-de-France actually fell by 13%, to 1.1 million sq. m. Supply rose in the Greater North, by 34% to 396,000 sq. m, the Greater South by 29% to 347,000 sq. m and in the Rhône corridor, by 13%, to 788,000 sq. m. Most availability is on the north-south axis. Note that while in the north and south, markets were still in a situation of under-supply at mid-year 2009, this has been relaxing a little since the end of the year. By contrast, in and around Lyon, the low level of take-up, the quantity of second hand space on the market and the completion of speculative developments at the start of the year have prevented any re-absorption of supply and as a result there is still a situation of over-supply. In 2009, the lack of visibility, financing difficulties and the wait-andsee approach of players led to developers refusing to embark on new developments. Speculative supply therefore fell by 70% in a year to stand at 300,000 sq. m at 1 st January 2010. At 1 st April 2010, only 4 developments for 130,000 sq. m composed speculative development: 1 in Ile-de-France, 1 in the Centre region and 2 in the Greater South. The two in the south are in Rognac and Port-Saint-Louis-du-Rhône for respectively 21,700 sq. m and 38,100 sq. m of class A warehousing, due for delivery mid-2010. TRENDS IN IMMEDIATE SUPPLY IN FRANCE (In million sq. m at period end) 4.0 3.6 3.2 2.8 2.4 2.0 1.6 1.2 0.8 0.4 05 06 Regions 07 08 Ile-de-France 09 Q1 10 GEOGRAPHIC BREAKDOWN OF FUTURE SUPPLY IN FRANCE AT 1 ST APRIL 2010 (In thousand sq. m) Greater North Greater South Ile-de-France Centre Rhône corridor Greater East Bourgogne Normandie West Greater Southwest 100 200 300 400 500 600 700 800 900 Speculative developments Semi-speculative developments HEADLINE RENTAL VALUES IN FRANCE AT 1 ST APRIL 2010 (In net /sq. m pa, class A or B, new) THE PROPERTY MARKET IN REGIONS Semi-speculative schemes totalled 4.3 million sq. m at the end of 1 st quarter 2010 (up 9% since the start of the year). These projects could be used for turnkey schemes or self-build schemes, which are expected to become more popular in the market for large units. Normandie 37 / 48 Greater North 40 / 45 Ile-de-France 46 / 52 Greater East 37 / 53 Repricing has taken place In 2009, real and headline rental values were driven down, posting falls that varied from one zone to another and depending on the quality of the building. In addition, commercial concessions granted by landlords during negotiations were frequently high. The end of the year did, however, see rents stabilise, a trend that continued in 1 st quarter 2010. Greater Southwest 43 / 48 Rhône corridor 44 / 46 Greater South 41 / 43 At 1 st April, rents were stable. Re-pricing appears to be coming to an end, except in a few sectors in a position of over-supply, particularly those with second hand and badly located premises. 15

THE PROPERTY MARKET IN REGIONS INVESTMENT 2009, the crisis hits headlong into regional markets Whereas in 2008, compared to the Paris region, provincial markets were relatively spared the effects of the financial crisis, in 2009 they took it head on. Only 1.9 billion euros were invested in 2009, a 39% fall that is equivalent to the average fall on the national scale. However, as regional markets accounted for more than a quarter of transactions nationwide, their relative share was at an all-time high, illustrating the ability of the provinces to be a credible investment alternative to Paris, especially in the eyes of international players. So the regional commercial real estate investment market did not avoid the repercussions of the financial crisis, which, by drying up virtually all credit from autumn 2008 onwards, drastically reduced the volume of capital available for investment. In addition, due to the decline in the economy, investors have been extremely wary of making decisions. Even though headline rental values were relatively stable, the provinces were not spared the brutal rise in yields and corresponding fall in value, which further impacted the fall in the total volume of investments. In addition, some sellers preferred to pull their assets off the market thereby further reducing the amount of supply. As a result, we witnessed a total freeze in the investment market at the start of 2009, barely 200 million euros worth of provincial assets exchanged hands in the 1 st quarter; small transactions were the only ones to be concluded. Then the market slowly improved, notably due to loosening finance conditions. On the whole, except in Lyon, regional markets have not experienced as marked an improvement as the one seen in Paris, where the market returned to performance levels seen before the crisis. Products: retail back in force Given the prevailing economic uncertainty and the risk-averse climate, investors focussed their interest on good quality, well located buildings secured with tenants on long term leases. Almost half of transactions in regional France in 2009 involved completed new or recent buildings. Buyers shied away from secondary assets and locations and on-going developments, which became virtually impossible to finance. Developers therefore accounted for a low volume of total sales 30% compared to their all-time high results for 2008 (in relative and absolute value) of 55% of sales. Similarly, apart from the Casino supermarket chain, which sold the largely regionally based Alcuida portfolio to Mercialys, occupiers did not outsource many portfolios in 2009 (22% of sales). Indeed, while many sale and leasebacks are secured by long term leases, in regional France, they are often for fairly specific or secondary quality buildings, neither of which are particularly popular with investors. Given this state of play, retail, as an asset that is considered very defensive and repeatedly a key choice for diversification in regional markets, fared well in 2009 accounting for almost 1.1 billion euros of investment or 55 transactions. This is twice the volume on the previous year and resulted in the segment taking half of regional investment for the first time ever. The sale of some large shopping centres and galleries 75% of investment volume was largely responsible for this level of investment, a segment in which no activity took place in 2008 due to a lack of supply. INVESTMENT IN STANDARD COMMERCIAL REAL ESTATE IN REGIONS (In billion euros) 5 4 3 2 1 00 01 02 Annual volumes 03 QUARTERLY TRENDS IN STANDARD COMMERCIAL REAL ESTATE (In billion euros) 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 04 05 BREAKDOWN BY INVESTMENT SIZE IN 2009 (In volume) > 50 M 41% Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Regions Sources: CB Richard Ellis and Immostat Q2 08 Q3 08 06 Q4 08 07 08 09 Q1 10 Share in French total. Q1 09 Q2 09 Ile-de-France Q3 09 Q4 09 40% 32% 24% 16% 8% Q1 10 < 10 M 20% 10 M - 25 M 17% 25 M - 50 M 22% 16