Consultant Cushman & Wakefield’s experts announced, at the beginning of the month, their projection for one of the segments that was most resilient to the effects of the crisis: yield compression in European logistics. There is a simple explanation. According to James Chapman, International Partner and Capital Markets EMEA at Cushman & Wakefield, «there is currently a lot of capital being allocated to the logistics segment and, consequently, we will see yields compress, especially in core assets».
Nevertheless, this scenario is not yet visible in Spain. According to consultant JLL, the results of the first semester show that, for now, in Spain prime yields on the logistic segment remain stable, being set at 4.75% in Madrid and Barcelona. For the cities’ secondary areas, on the other hand, a different scenario is projected: «the products in secondary locations or of lesser quality could suffer a slight increase in yields», revealed the consultant on its latest report "Logistics Market Fundamentals".
The real estate lockdown caused by the pandemic was also felt in the logistic segment, affecting the investment accumulated during the first semester which, according to JLL, dropped to about half y-oy-, reaching around 235 million euro.
Nevertheless, we saw two types of behaviours during this period. «The more conservative investors have remained in a more cautious position in the face of the uncertainty generated by the pandemic», explained JLL, which further noted «investors with a more value-added profile that have been very active in studying possible opportunities».
«Over the next few months, the logistics investment market will start to recover, as the funds are optimistic and very active, with hardly any changes in capital to be invested in Spain. During the second half of the year, assets will continue to be traded due to the expectations placed on the sector», concluded JLL.