Take up of logistics space in Madrid in 2016 rose to 410,000m², above that of 2015 (385,000 m²), responding to a backdrop of improving retail sales and internal consumption. According to Cushman & Wakefield, 39 new occupancy contracts and 6 large transactions of more than 15,000 m² were registered.
This consultancy also highlights the new risk developments, that is to say, which do not have a prearranged tenant given the lack of quality and obsolescence of existing space available. Future supply is gaining in inertia, and, for 2017, new works covering 100,000m² are expected in the prelet key-in-hand category
In Madrid, the prime rent is about 5 €/m²/month which is expected to rise, given the scarcity of available modern space and the added values incorporated into buildings entering the market in 2017.
A record set in Barcelona, with a 645.000 m² take up
The take up of logistics space in Barcelona in 2016 overtook the record of the year before, by reaching a sum of 645,000 m². This total represents an increase between the two years of 17%, if compared with the data from the close of the previous financial year when a record take up of the last few years (550,000 m²) was achieved.
The report from Cushman & Wakefield points out that the “major players” in distribution have hired space during the year, with more than 19 transactions above 10.000m², of which 50% were of more than 15.000 m². The main contracts, to which the above amount refers, are located in the prime zone of Barcelona, Baix Llobregat, Camp de Tarragona and el Vallès, and represent 65% of total take up.
With regards to the rents, in the prime zones they have gone up by 9% and, according to the consultant, the reason for this is the lack of Triple A product and the rise in demand on the part of the main operators which can push up rents, even more, in the short term. Hence, the prime rent in Barcelona is today 6 €/m²/month, at levels similar to 2009.
In the remaining areas the logistical rent has also registered a significant increase compared to the previous year, at 3,75 €/m²/month at close of year, with the annual difference being much more in this case, corresponding to 66% in respect of December 2015.
In the opinion of Ramiro Rodríguez, Associate Director – Head of Research at Cushman & Wakefield España, “The logistics real estate market is ‘in fashion’. The search for space is very energetic due to the growth of retail sales requests. Additionally, this is accompanied by a strong growth in eCommerce in Spain, which will boost new occupancy formulas and the use of logistics platforms.