Demand For Logistics Real Estate Up 50% in Madrid

28/08/2014 – El Pais

According to the Logistics Market Monitor report by Aguirre Newman, contracting of logistics space in Madrid registered in the first half of the ongoing year represented 77% of the total number of agreements signed in 2014.

The entire space demanded in the second quarter of 2014 spreads over 97.993 square meters. It means a 48% improvement in comparison to the same period in 2013. Better performance was boosted by the demand for medium-size and large surface as 75% of the Q2 contracting corresponded to areas greater than 7.000 square meters.

Around 87% of all transactions carried out from April to June concerned rentals, whereas the remaining 13% – sales.

The Community of Madrids most demanded area is Corredor del Henares with a 73% total absorption rate. Next rank the Zona Sur (the Southern Area) with 20% and the Zona Norte (the Northern Area) with 7%. The Corredor del Henares – residential, industrial and business area in the north of the capital – also wins in terms of absorption in the second quarter of the year. An 80.000 square meter area in total was contracted during this period of time, representing 82% of the overall score. Noteworthy is the operation carried out in Azuqueca de Henares industrial area called Polígono de Miralcampo, involving 22.000 square meters.

Moroever, the second quarter of 2014 saw many investment projects pursued by both national and international investors. As of the report by Aguirre Newman, the activity on-high will be even enlarged by several huge volume operations currently being in the due diligence phase. For instance, a transport company is negotiationg a turnkey agreement on 11.500 square meters in San Fernando de Henares, while in Leganes a logistics hub of 5.546 square meter is changing hands.

When it comes to the market in Barcelona, during the second quarter of the year, the total area involved post 54.582 square meters meaning a 32% increase in comparison to Q2 2013. The upsurge is due to 10 operations carried out during this period of time, by 4 more than a year earlier. Rental contracts accounted for 90% of the total.

 

Original article: El País (by Paula Cossío)

Translation: AURA REE

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