Spain has attributes to become an European logistic hub

Spain has attributes to become an European logistic hub

Investors' interest in Spanish logistic segment is growing

This is one of the main conclusions from the latest Savills Talks Young Talent dedicated to the logistic segment, where Spain’s strengths were highlighted: a strategic location in Southern Europe, transport networks and infrastructure, the rise of e-commerce in the last few years and in particular throughout 2020, which has allowed for a positive evolution within the logistic segment.

«Logistic real estate registered very positive data in the last years and the current situation, marked by the peak of e-commerce has accelerated this trend», highlighted Miquel Peña, an associate at the Logistics Department for Savills Aguirre Newman Barcelona and moderator at the debate.

But most of the Spanish logistic park is obsolete and it is necessary to boost this segment through private-public partnerships, in order to organize the existing logistic assets and, above all, streamline the administrative and bureaucratic processes. According to the participants, one of the «most effective» options is to buy terrains to build new assets from scratch according to the tenants’ specific needs. But it is also necessary to convince the current owners to invest in the rehabilitation of their assets, although it is also necessary to have them lower their expectations in terms of rental prices.

Investing interest in this segment grows

As was shared by the participants in this debate, the logistic segment has become an asset class for institutional investors, interested in the high returns this segment offers when compared to other real estate segments. A recent study from Savills Aguirre Newman showed that investment in the industrial-logistic segment set a record by representing 20% of all world real estate investment during the first semester of 2020.

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