Valencia’s Logistics Market will Incorporate 6+ New Platforms in 2019

14 May 2019 – Valencia Plaza

The logistics real estate sector in Valencia is on a roll. At least that is according to a study conducted by Triangle Real Estate Management, which highlights the plentiful supply in the province, in particular in the Riba-Roja and Cheste areas.

Construction is currently underway on three new logistics platforms, spanning 53,000 m2 in total, in the town of Riba-Roja, which are expected to be completed in Q3 2019. Moreover, work has already been finished this year on three other logistics properties in Paterna, Torrent and Loriguilla, with a combined surface area of 40,000 m2.

In addition, there are eight other projects in the pipeline to build turnkey properties, spanning a total surface area of 261,123 m2, which will be ready 9-12 months after they have been signed.

Stock of properties

On the other hand, the report details that the total stock of properties available for storage in the Valencia area spans a surface area of more than 2.5 million m2, of which 60% is located in the Valencia Logistics Corridor, comprising the municipalities of Riba-Roja, Loriguilla and Cheste. However, most of the available surface areas are “old, small properties”.

Land under development

The Valencian logistics market also has 6 million m2 of land available for development, in other words, land that is buildable and classified as industrial but pending the completion of one or more urban planning procedure. 75% of that land will be developed over the long-term, in other words, in more than 5 years time.

Rental prices

Market prices have risen in recent months due to the shortage of supply. Asking prices in the prime areas along the A-3 (Riba-Roja, Cheste, Loriguilla and Quart de Poblet) amount to €4.5/m2/month, compared with €4.25/m2/month in the area around the Ford Almussafes factory and €3.75/m2/month in secondary areas and places such as Sagunt.

Original story: Valencia Plaza (by Begoña Torres)

Translation/Summary: Carmel Drake

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