The logistics market in the province of Valencia will increase its supply in the coming months with the incorporation of 182,934 sqm of logistics space from ‘at risk’ projects, the construction of which began at the end of 2024. This activity seeks to respond to the high demand for logistics platforms in the region, consolidated as one of the main logistics hubs on the Iberian Peninsula, together with Madrid and Barcelona.
Currently, the logistics surface area under construction in Valencia totals 599,056 sqm, distributed into 182,934 sqm of ‘at risk’ projects, 59,653 sqm of ‘turnkey’ projects and 356,469 sqm of ‘self-development’. The North Axis, particularly the industrial area of Parc Sagunt, concentrates most of the self-development logistics platforms.
According to Triangle Real Estate Management's (Triangle REM) 2024 Real Estate Market Study, ‘at risk’ platforms will be available in the coming months, located mainly in the Central Axis (Cheste Circuit, Loriguilla, Quart de Poblet), South Axis (Silla, Codonyers de Picassent Industrial Estate) and the Pista de Ademuz (Bétera).
Jesús Fajardo, manager of Triangle REM, predicts that 2025 will consolidate the presence of large logistics companies in the Valencian Community, driven by the development of large-format platforms in strategic enclaves. During 2024, there have been new establishments of renowned companies in the region and new developments promoted by investors.
Overcoming the shortage of large-format warehouses
The 2024 analysis reveals a shortage of large-format logistics warehouses in Valencia, with 42% of the stock comprising spaces smaller than 10,000 sqm. However, the design of larger plots in municipalities such as Cheste, Loriguilla, Bétera and Puerto de Sagunto, together with ‘at risk’ developments, has increased the availability of properties larger than 30,000 sqm.
In addition to the 600,000 sqm currently under construction, there are 177,365 sqm of finalist land awaiting contracts to start building, with availability expected in 9 to 12 months. On the other hand, five developments in ‘land under management’ total 532,082 sqm, destined for Big-box platforms in areas such as the central axis (Riba-roja, Cheste, Loriguilla) and the first crown of the Pista de Ademuz.
Contracting and prices
The volume of contracting reached 280,919 sqm at the end of 2024, a lower figure than the previous year due to the lack of available product. The highest activity was recorded in the central axis, with 152,542 sqm under contract, including operations such as the 24,500 sqm deal for the Danish company JYSK in the Cheste Circuit Business Park, managed by TPF Consulting together with VGP.
During 2024, 226,963 sqm of new construction was added, bringing the availability rate to 0.44%. Maximum rents in the prime area reached 5.65€/sqm/month, while in the southern axis they stood at 5.50 euros and in the northern axis at 4.85 euros per sqm.
The incorporation of new logistics platforms and the arrival of large companies reinforce Valencia's position as a strategic market, together with Madrid and Barcelona, within the logistics panorama of the Iberian Peninsula.