Prime rents in the logistics sector close the 3rd quarter on the rise

Prime rents in the logistics sector close the 3rd quarter on the rise

The Spanish logistics market is experiencing continued growth in rents, with prime rents in the central area up 4% from the previous quarter to €6.50/sqm/month. In Catalonia, limited availability, especially in prime areas, has led to an increase in rents to 8.5 euros per square metre per month, representing an increase of 3% compared to the previous quarter and 13.3% compared to the same period in 2022, according to the latest report provided by CBRE.

In terms of space take-up, the third quarter has been significant for the logistics sector in Spain, with more than 311,000 square metres being contracted, a figure that not only represents an increase of 54% compared to the same period last year, but is also the second highest on record. Of this total, 83% corresponds to net take-up, indicating a positive dynamism in the market.

From January to September, 695,247 square metres have been registered in terms of take-up in the Spanish market, 60% higher than pre-pandemic levels and pointing to a year-end above the average of the last decade.

In regional terms, Catalonia has registered a total take-up of 408,927 square metres up to September, which represents a reduction of 30% compared to the previous year. However, 90% of this contracting has been net, although the last quarter has seen a 57% decrease with only 83,000 square metres contracted compared to the third quarter of 2022. Availability in the central area at the end of the quarter has experienced a slight increase, with a ratio of 7.2%.

According to the consultancy firm, the volume of space delivered in the last nine months reached 688,314 square metres, with 70% already occupied. On the other hand, logistics investment in the first nine months of the year reached 674 million euros, reflecting a 67% decrease compared to the previous year. Investments in the quarter were focused on smaller operations, marking a decline in the acquisition of large portfolios.

On the yield side, the rise in interest rates pushed up the prime yield, which reached 5.15% at the end of October, an increase of 40 b.p. since the end of 2022.

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