CBRE: Logistics Leasing in Spain Grew by 17% during First 9 Months of 2018

8 October 2018 – Eje Prime

The logistics sector is continuing its rate of growth. In total, 1.38 million m2 of logistics space was leased in Spain during the nine months to September, up by 17% compared to the same period in 2017.

Investment in the industrial sector also increased between January and September 2018, exceeding €1.1 billion, up by 43% compared to the previous year, according to CBRE. Prime yields, on the other hand, amounted to 5.55%, driven by high buyer activity and a shortage of available products on the market.

In terms of geographical areas, during the first nine months of the year, 632,000 m2 of logistics space was leased in Madrid, almost equalling the figure recorded during the same period in 2017. Of that amount, more than 50% corresponded to warehouses with surface areas spanning more than 20,000 m2.

Similarly, in Barcelona, the other city that accounts for some of the most logistics activity in the country, 483,000 m2 of logistics space was leased during the nine months to September, whereby exceeding the figure registered during the same period a year earlier by 53%. The lack of available space in the first and second rings means that the volume of space leased depends, to a large extent, on turnkey projects and pre-leases.

For another quarter, prime rents in both Madrid and Barcelona remained stable at €5.25/m2/month and €6.75/m2/month, respectively.

Other areas recorded a good level of activity during the nine months to September with Valencia, Zaragoza and Sevilla leading the charge, with logistics leasing of 138,800 m2, 58,800 m2 and 42,000 m2, respectively.

According to Alberto Larrazábal, National Director of Industrial and Logistics at CBRE, “cities such as Valencia, Zaragoza and Málaga blame the lack of available land dedicated to the execution of new projects, which is making the search for new mega-plots imperative”.

Original story: Eje Prime

Translation: Carmel Drake