Take-up of industrial warehouses in Madrid goes up for the first time in 8 years

Take-up of industrial warehouses in Madrid goes up for the first time in 8 years

Market development in this community during the past year confirms the positive predictions of experts at the end of last year. However, it should be pointed out that this increase in take-up in the logistics sector has been slow and gradual over the whole period, according to information from Gesvalt, a consulting and asset valuation company.

Sandra Daza, Managing Director of Gesvalt, considers that “these are important figures which show the reactivation of the sector, which will also experience a great change in coming years especially due to the reactivation of consumerism combined with the growth in e-commerce”. In this sense, Daza predicts that “we will see an increase in the supply of this kind of industrial space, especially in Madrid and Barcelona”. 

In the province of Madrid, which has up to 43 industrial zones, the average distribution of industrial types can be divided into: 32% production, 22% storage 12% logistical, 7% commercial and 27% business park.

The extraction and manufacturing sector is giving way to pressure of supply and distribution. The big companies dedicated to this activity setting up in this region are demanding large areas of space, near the large populations and with good access to motorways. For 2017, this change is predicted to consolidate, with slight rent increases, yields which could reach 7% and a slight increase in the number of transactions.

Almost 50% of the investors in the industrial market in the region are form national and international institutions, whilst the other half are divided between the SOCIMI and the Family Office. On the other hand, it has been, above all, the large financial entities which have concentrated on the divestment of this kind of product.

The interest of the market in renting over selling, the scarcity of land in the most sought after areas and the continuing attractive rates of return (6%), are confirming that the recovery of the sector, although still in progress, has come a long way.

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