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2017 / iberian.propery // 65
ISSUE: TOP IBERIAN Investors //dossier
Supply shortages available
«hinders»
further growth
in Spain
However, Madrid closed the Q1 with a total take-up of 127,700 m², been
this the region with the record of the highest rent to be applied in this
period: 6 €/m² month, to a specific transaction in the CMT area, states
Aguirre Newman. In any case, JLL’s prediction is that the industrial rents
over the Spanish capital follow the course of growth, at an annual aver-
age of 2.3%, between 2017 and 2021, that is to say the 6º largest growth
at European level.
CBRE estimates that the level of activity regarding take-up inMadrid, in the
first quarter of 2017, was 13% below than in the same period. According to
the consultant themain reason is not the decelerating of demand, but yet
the supply shortages available in linewith the requirements of the take-up.
JLL estimates that Madrid’s market shows a vacancy rate of 4.29%, being
currently under construction 206.623 m² of the newGLA, 26% alreadywith
tenant, expecting that by the end of the year 107.826m² to be completed.
Investment grew 70.4% up to March
Taking this scenario into consideration, the investors keep strengthen the
focus in the industrial and logistics Spanishmarket, inwhich they invested
about €230million during the first quarter. This figure, determined byAgu-
irre Newman, in its
“Q1 Monitor Mercado Logístico de Madrid y Barcelona”,
represents an annual growth of 70.4% in viewof the €135 million assigned
to the sector in the same period of 2016, and assume yields by 5.75%.
Prime Industrial Yields Iberia Q1 2017
sources: Cushman & Wakefield, JLL
The other side of the coin: the Portuguese case
On the other side of the border, the industrial market is the one
that has taken longer to recover, with the take-up of sites on the
market of Lisbon somewhere around 140,000 m² in 2016. This
figure, indicated by CBRE, already unfolds a 5% growth regarding
2015, but still 16% below the average of last decade.
This take-up also reflects a market where over the last four years
does not exist new construction, where the entry of newoperators
is not significant, and where large distribution companies have
been settling their expansion needs into the places they already
occupied, due to the lack of available qualified warehouses.
Nevertheless, after five years of residual encouragement in greater
Lisbon area, it was launched in 2016, in Alverca, the first speculative
construction project. Taking into account the business growth of
the distribution companies, the CBRE expects more movements
in this sector this year, anticipating the launch of new buildings.
One of those projects concerns the construction of the first naves
in the Logistics Platform Lisbon-North, in Castanheira do Ribatejo.
With a development potential of 430,000 m² of Gross Floor Area,
this platform would gain a fresh impetus after its acquisition last
September, by Merlin.
This asset was one of the five included in the “
done deal”
by Spanish
socimi with SABA, acquiring by €115 million SABA Parques Logísti-
cos and its assets, namely the parks in CimVallès (Barcelona) and
Lisboa-Norte (Portugal), as well as equities in Parc Logístic de
la Zona Franca (Barcelona), Sevisur (ZAL Puerto de Sevilla) and
Arasus (Álava).