World Capital, sponsored by Nomisma and in collaboration with Assologistica and professor Fabrizio Dallari, has presented the figures concerning the national logistic property market for the first half of 2017. The analysis shows the market consistently growing, reaching approximately 700 million euro in the only Italian territory.
The logistics property market
For the first semester of the year, the rentals have been substantially unchanged compared to the previous semester, except for the new properties in the north of the country (built in the last ten years or redeveloped)that grew by +4%. The cities on top of the list are Genoa (62 €/Sq m/year)and Milan (55 €/Sq m/year), followed by Rome (56 €/Sq m/year) and Catania (46 €/Sq m/year). For what concerns the rentals of used properties, the highest values were registered in cities such as Florence and Milan (50 €/Sq m/year), Rome (48 €/Sq m/year), and Genoa (47 €/Sq m/year).
Regarding the dimensions, the most requested properties were above 5,000 Sq m with 53% of the total, followed by spaces comprised between 1,000 and 5,000 with 35%, while only 12% requested spaces below 1,000 Sq m.
Concerning the credibility of the sector, the logistics property market confirms its steady growth, with total investments amounting to 700 million euro only in Italy. The increasing interest of the investors for logistics properties and the competition over the quality assets in the best location and with reputable tenants were factors for the yields to reduce. The most significant variations were registered in Milan and Genoa. In fact, the net returns in Milan for the first semester have been between a minimum of 6% and a maximum of 7.2%, whereas in Genoa the range varies from 6.4% to 7.5%.
The totality of the logistics assets covers a surface of about 34,700,000 Sq m, 75% of which is represented by properties for logistics purposes, with a surface of 26 million Sq m.
Considering the total national stock, covering 26 million Sq m, 64% is located in Northern Italy, more precisely in the North-West, with a total of approximately 11,700,000 Sq m, followed by the North-East with about 6,100,000 Sq m. The remaining stock is in the Centre with approximately 4,600,000 Sq m, the South with approximately 2,760,000 Sq m, and the Isles with 800,000 Sq m. Lombardy is the region with the highest concentration of surfaces for logistics use with 9 million Sq m (39%). Together with Lombardy, Emilia-Romagna, Lazio, Piedmont, and Veneto accommodate 74% of the total national assets. At a province level, Milan is in the first position, registering 16% of the total stock of logistic properties.
“In the first part of the year we have reported a positive trend and the interest of the investors for the logistics real estate market, supported by an increasing demand by the operators of the logistics sectors, – states Neda Aghabegloo, responsible for the World Capital Research and Advisory Department – the investors don’t only focus on the rental of new warehouses, with surfaces over 5,000 Sq m, but they also participate in the development of new ones, which in 80% of the cases are built according to specific requirements, the so-called “built-to-suit”. Besides, the absorption of the market has increased. Finally, innovation and e-commerce are changing the supply chain which is gradually becoming a demand chain.”
Translator: Cristina Ambrosi