The report sets out that during the present financial year, interest in the logistics real estate market will continue very high, though the lower supply of assets for sale may mean that totals do not reach those of 2016, though they will be above the historic average.
From the geographical point of view, investment activity has been heavily concentrated on the Madrid market, and its sphere of influence, with 45% of total investment. Cataluña made up 30%, while 23% were transactions mainly in Zaragoza and Valencia. Din face, the scarcity of supply in both Madrid and Barcelona, is causing some investors to become more interested in secondary markets, such as especially Zaragoza, Valencia and Seville.
In respect of yields, the report pointe out that in 2016, these were at around 6% in the prime markets of Madrid and Cataluña, a descent of 100 points has occurred since the end of 2015. In the same way, the rate of return in secondary markets has continued at around 7.5-7.75%.
High level of activity in 2017
According to Aguirre Newman, take up will continue high in 2017, a consequence of the need to increase warehouse areas and distribution on the part of operators. Plus, rents for the best assets continue to move up slightly, as does development activity, both in key-in-hand development projects as in those more speculative, which have been growing for two years.
Also this year, Aguirre Newman point out, there will be high investor interest, especially from institutional investors within the core and value-added segment and by real estate companies. The most active markets will be Madrid and Barcelona, although, poor supply will force investors to consider secondary markets such as Zaragoza, Valencia and some areas of the País Vasco.
Faced with the lack of finished product for rental, high demand prospects and the need to renew logistics stock, there will be interest from developers and investors in the acquisition of land for project development and purchases of the forward funding or forward purchasing format.