Tag: BNP

BNP Paribas: Logistics Leasing Rose by 48% in Cataluña in Q1

20 April 2018 – Eje Prime

The leasing of logistics space in Cataluña rebounded by 48% during the first quarter of 2018 with respect to the same period a year earlier, to amount to 185,890 m2, according to a report compiled by the Research Department at BNP Paribas Real Estate. The leasing figure is 40% higher than the quarterly average for the last three years, during a period of consolidation in the Catalan logistics market.

A large proportion of the surface area leased during the first quarter of the year saw the pre-rental of warehouses under construction and turnkey projects. In this sense, operations involving surface areas ranging from 7,000 m2 to 50,000 m2 stood out in particular.

Rental prices continued to rise and prime rents increased by 3%, to reach €6.5/m2/month. The good pace of logistics leasing indicates that the upward trend will continue over the next few quarters. In terms of average rents in the local, regional and national logistics corridors, the same behaviour is being observed in terms of rising prices and a decrease in shortages, with growth of 5% in annual terms, to reach €4.7/m2/month.

On the other hand, the availability rate of logistics space in Cataluña continued to fall to reach 2.8%, at the same time as construction activity was increasing due to demand for rental properties. The development of turnkey projects means that the available surface area has not been affected, remaining at very low levels.

Original story: Eje Prime 

Translation: Carmel Drake

Torre Rioja Builds Large Office In Julián Camarillo Area (Madrid)

7 February 2017 – Cinco Días

Madrid is going to have a new large building in the Julián Camarillo area of the capital, where many cutting edge companies and technology divisions of large businesses are choosing to concentrate their operations. “The neighbourhood is becoming an area similar to the 22@ district in Barcelona, full of innovative companies” said José Miguel Setién, Director of Offices at the consultancy firm JLL. (…).

The new building, on Calle Julián Camarillo (number 31) is being constructed by the property developer Torre Rioja, which is led by the businessman Ángel Soria. The property, which is currently in the initial phases of construction, will have a surface area of 36,000 m2 spread over six open-plan floors, measuring 8,000 m2 each. The property is expected to house around 3,500 employees. (…).

Now that Torre Rioja has started the initial phases of construction, the search has begun to find a company to move into the property. JLL and possibly one other agent have been engaged to this end. (…). The design may be modified slightly to suit the needs of the future tenant. (…). In any case, the property developer expects construction to be completed within two years. Moreover, the building will have a retail area, with more than 1,000 parking spaces, as well as service areas. (…).

The JLL Director believes that this property in the Julián Camarillo area will primarily be of interest to technology, engineering and communications companies, as well as to back office divisions of large companies and banks.

The Julián Camarillo industrial estate was created between the 1950s and the 1970s as a base for industrial companies. (…). But, it has gradually transformed into an area for offices and even homes. Certain divisions of firms such as IBM, Tecnocom, Atos, the German firm ABB, the engineering firm Eptisa and the University Alfonso X el Sabio have their offices there.

In recent months, Torre Rioja been overseeing renovation work at two of its major office buildings in an area adjoining the A-2 motorway. The insurance company Axa will move into a 23,600 m2 property and the bank BNP will move into an adjoining 20,000 m2 building, now owned by the real estate company, which previously housed the R&D division of Telefónica. Meanwhile, the property developer has seen its sales decrease in recent years, from €27.8 million in 2010, compared with €18.7 million in 2014 (the most recent accounts filed in the registry).

The main drawback for the property developer in this operation in attracting a high profile tenant to the area, given that the building is located relatively far away from the city centre and the industrial estate lacks the services on offer in the centre. Nevertheless, tenants pay considerably lower rents here. Whilst along Paseo de la Castellana, rents in the best buildings can be as high as €25/m2/month, they cost less than €10/m2/month on this industrial estate.

Original story: Cinco Días (by Alfonso Simón Ruiz)

Translation: Carmel Drake