4 October 2017
Aghabegloo (World Capital): it’s a growing sector, reaching investments for approximately 700 million euro only in Italy
A semester characterised by optimism. This is the conclusion emerging from the new edition of the Real Estate Report of Logistics by World Capital, in collaboration with Nomisma and with the participation of Assologistica. The dossier analyzes the first six months of 2017, with a particular focus on the prices of the main Italian and European locations.
“In the first semester of 2017, we’ve registered a particularly positive trend and a proactive attitude from the investors towards the logistical property market, supported by an increasingly growing demand from the logistics companies”, declared Neda Aghabegloo, responsible for the Research and Advisory Department of World Capital. “The companies are not only focused on the location of the warehouses, with spaces bigger than 5,000 Sq m, but also in the development of new properties, which in 80% of the cases are tailor-made, the so-called “built-to-suit”. In these first six months, we can also see an increase of the market absorption. Finally, innovation and e-commerce confirm to be two important factors for the evolution of the supply chain, which is turning into a “demand chain”,
In the first semester of 2017, the range of rents has substantially remained unchanged compared to the previous semester, with the exception of new buildings (built in the last ten years or renovated) located in the North and with a growth of +4%. Among the main Italian cities, there are Genoa (62 euro/Sq m/year), followed by Milan (55 euro/Sq m/year), Rome (56 euro/Sq m/year), and Catania (46 euro/Sq m/year). For what concerns used properties, the highest rents are reported in Florence and Milan (50 euro/Sq m/year), Rome (48 euro/Sq m/year), and Genoa (47 euro/Sq m/year).
Looking at the main dimensions requested by customers, 53% is over 5,000 sq m, 35% of the spaces is between 1,000 and 5,000 sq m, while only 12% of properties are under 1,000 sq m.
Focusing on the credibility of the sector, the logistical property market is constantly growing, totalling investments for about 700 million euro registered in the Italian territory only. The growing interest by the investors for logistical properties and the competition for the quality assets in the best locations and with the most prestigious tenants has translated in a reduction of the yields for this first semester. The most significant variations are registered in Milan and Genoa. The gross earnings for Milan go from a minimum of 6% to a maximum of 7.2%, while in Genoa the range varies from 6.4% to 7.5%.
The logistical property stock in Italy
The World Capital Research Department has carried out for the first time a mapping and analysis work on the logistical property market in Italy including logistical properties, distribution centres, and hubs. The study shows that logistical properties cover a total surface of 34,700 sq m. It’s interesting to note how 75% of the total is occupied by properties for logistical use, totalling a surface of about 26 thousand sq m.
The analysis considered several parameters, the most important ones being location, distance from motorways/junctions, total square metres, and the presence of docks. Based on these characteristics, three main property types have been identified and divided into the A, B, and C types.
- Type A properties: for logistical uses and featuring docks, with a surface over 15,000 sq m and distance below 30 km.
- Type B properties: for logistical uses and featuring docks, with a surface between 5,000 and 15,000 sq m and a distance above 15 km.
- Type C properties: for logistical uses, with or without docks, with a surface below 5,000 sq m and distance above 15 km.
It turns out that 52% of the surface of the logistical property stock is composed of type A properties. Covering about 13,500,000 sq m, 39% is the percentage of type B properties, for approximately 10,200,000 sq m, and 9% are the type C properties, for a total surface of about 2,400,000 sq m. We must stress that 20% of the warehouse units present in the country are type A, while 62% are type B.
Considering the total national stock, covering 26 million Sq m, 64% is located in the North, precisely in the North-West, with a total of about 11,700,000 Sq m, followed by the North-East with approximately 6,100,000 Sq m. The remaining stock is located in the Centre with about 4,600,000 Sq m, the South with 2,760,000 Sq m, and the Islands with approximately 800,000 Sq m. Focusing on the map of logistical properties, Lombardy is the region with most properties for logistical use, with a surface of 9 million Sq m (39%). In this way, Lombardy together with Emilia-Romagna, Lazio, Piedmont, and Veneto accommodate 74% of the total national stock.
Analyzing the logistical properties at province level, among the top 30 provinces, Milan is at the first position, covering 16% of the property stock. Finally, thanks to the Appeal Index tool provided by World Capital allowing to assess the quality of the investment in relation to socio-economic and geographical parameters, it has been possible to create an investment opportunities map, focusing in the most attractive areas.
The most appealing areas are the Municipality of Arese for Lombardy, Venice and Villorba for Venice, Gravellona Toce for Piedmont, and Villesse for Friuli-Venezia Giulia.
Translator: Cristina Ambrosi