Logistics investment in Spain has exceeded 1,510 million euros during the first half of the year, almost the total investment in 2020, and the forecast is to reach a historical record in investment in logistics in Spain with more than 2,000 million euros in 2021, according to data presented by Savills Aguirre Newman in Stock, the report on the evolution of the logistics market published this week by the real estate consultancy.
The presentation of the report has had the participation of the heads of Industrial & Logistics of Savills Aguirre Newman in Spain, who have explained the situation and evolution of the activity in the markets of Madrid, Catalonia, Andalusia and Valencia.
As Antonio Montero, Executive Director Head of Industrial & Logistics at Savills Aguirre Newman explained during the provision of Stock, “in just over a year our market has come to the centre of attentions, mainly due to the needs derived from the increase in e-commerce. The need to update and increase the existing park to adjust to new needs also became evident, so the logistics sector faces great challenges such as the scarce availability of logistics land in some areas, the sustainable adaptation of urban logistics, how they will evolve the rents or to what extent the returns will be compressed, among other issues ”.
The logistics stock in the Madrid market currently stands at 12 million sqm and it is expected that in the last quarter of the year it will reach 12,350,000 sqm, which will mean an increase of 41% compared to 2015 and the incorporation of 3.5 million sqm in the last six years, almost a third between 2019 and 2020.
Regarding logistics availability in Madrid, the average availability rate stands at 8%. The areas with the highest availability are the Corredor del Henares, with 54% of the availability, and the southern area, which accounts for 29%.
In relation to hiring, during the first half of the year, the figure has risen to 641,000 sqm and the consultancy expects that 2021 will also be a record year in terms of absorption in Madrid. Prime rents in Madrid have undergone a slight increase compared to 2020, standing at €5.75 / sqm / month, and a 44% accumulated growth compared to 2013.
The current total stock is 8.5 million sqm, mainly concentrated in the city of Barcelona. After having incorporated a little more than 2 million square meters in the last seven years to the market, currently the total availability in Catalonia is about 277,000 sqm.
Availability in the central and first crown area of Barcelona is below 2%. According to the real estate consultancy, the low availability rate highlights the existence of an unsatisfied demand. Regarding the future offer, it is estimated that, for the next quarters of the year, new surface will be incorporated, around 315,000 sqm in the second quarter of 2021 and about 500,000 sqm in 2022. In any case, and in view of the rates contracting, the consulting firm points out that the shortage of finalist land or land under management suitable for logistical use for new stock production, makes it difficult to retain companies or the implementation of new projects that need to be in very specific areas and that nowadays they do not have enough options to assess. In the first semester, the absorption reached a total of 483,000 sqm, mainly due to rental operations linked to e-commerce activity.
70% of the new offer is already rented and by 2022 the pre-let represents 64%. In this context, regarding the evolution of prime rents, Savills Aguirre Newman foresees an upward trend caused by the shortage of supply in some areas, in addition to the improvement in energy efficiency, sustainability and operability of the new logistics warehouses.
The Valencian logistics market occupies third place by size at the national level. The identified logistics stock stands at around 3,000,000 sqm and its recent growth is mainly motivated by the increase in e-commerce, by the increase in the weight of the Port of Valencia, as well as by the number of direct inhabitants it supplies. This year some 326,000 sqm of new surface will be added.
With the development of new promotions projected in the medium term, Valencia has the real possibility of offering XXL projects, since it was one of the great shortcomings of the market and some activities had to contemplate other places in which to develop their activity.
The logistics absorption in Valencia during this first semester is around 124,000 sqm, and prime rents remain stable, around €4.50 / sqm / month for those properties that are better located and quality of state-of-the-art properties.
Logistics availability in Malaga and Seville has been practically null during the first semester of the year and the real estate consulting firm highlights the start of new projects, a fact that represents a turning point after years without asset promotion in both provinces and which will incorporate new state-of-the-art surface with the incorporation of Green Logistics projects in both cities.
The insufficiency of finalist land suitable for logistical use in Malaga has meant that there is no availability for new developments in the short term and that turnkey or pre-rental operations are considered. Regarding the future supply of the logistics market in Seville, the SE-40 highway has been a decisive stimulus in the south and east of the Seville logistics market and will cause future logistics developments to be concentrated in this geographical area.