The logistic segment registered, during the second quarter, more than 170 million euro, bringing the investment numbers, for the year so far, close to 400 million euro. Madrid registered the highest volume within the second quarter, with around 120 million euro, which represents almost 15% more yoy.
Madrid’s absorption of logistic spaces increased 88% y-o-y, being set at 165.000 sqm and Barcelona’s grew 25% to 90.000 sqm, revealed the latest “Snapshot Logística” (Logistic Snapshot) report compiled by the consultant.
E-commerce boosts market
The good moment the logistic segment is experiencing is explained by e-commerce’s rapid growth. «One of the activities which has, without a doubt, come out stronger after the confinement, has been e-Commerce, with the consequent growth of the last mile logistics activity, affecting not only logistic warehouses, but also distribution centres», explained Jorge Sena, partner and director for the Commercial Department at Knight Frank, who further predicted that «this trend will remain and we will witness a different way of consuming which will affect online shopping and the need for immediate delivery. For this reason, we consider the last mile logistic segment to be one of the segments that can come out stronger out of this situation», he concluded.
Rents and Yields remain stable
Despite the increase in demand for logistic spaces during the second quarter, prime rents remained stable both in Madrid (5.50€/sqm/month on average) and Barcelona (7€/sqm/month on average), the same as the availability rate, which was of 6% and 3.5% respectively.
Prime yields also remained stable at 4.75% during this period both in Madrid and Barcelona. Knight Frank predicts that this market will attract new players, which have, so far, been underrated and other more experienced investors will focus on acquiring more modern assets.