Barcelona’s Logistics Market Grows by 74% in H1, Boosted by e-Commerce

4 July 2018 – Eje Prime

E-commerce boosted the logistics market in Barcelona during the first half of the year. During the first six months of 2018, 390,678 m2 of logistics land was leased in the Catalan city and its surrounding area, representing an increase of 74.4% with respect to the same period last year.

According to data from Savills Aguirre Newman, e-commerce operators “are acting as the drivers of the market”. One example of this is the rental of a 48,000 m2 warehouse by the French operator Vente Privee (owner of the Spanish firm Privalia) in La Bisbal de Penedès.

During the first quarter of the year, 186,047 m2 of land was leased in the logistics market, whilst during the second quarter, that figure increased to 204,631 m2. In total, 36 transactions were closed during H1, compared with 22 during the same period in 2017.

“Another trend that has become apparent during the first six months of this year is that of turnkey projects, which have been undertaken in the Logistics Activities Zone (ZAL) as well as in the first industrial ring”, says Savills Aguirre Newman. These projects include the construction of a cross-docking warehouse for Cilsa and a warehouse for Saica in Sant Esteve Sesrovires.

In light of the increase in demand, the available stock in the areas closest to Barcelona is now less than 2.5%, according to the real estate firm, which is leading to the development of new projects.

“The lack of buildable land, as well as of constructed products, is leading new players, such as investment funds and property developers, to take positions in the logistics sector to incorporate new high-quality products”, adds Savills Aguirre Newman.

Another trend is the increase in the size of space leased per operation, with up to 8 transactions involving more than 20,000 m2 (compared with just two operations of those dimensions during the first half of 2017).

Original story: Eje Prime

Translation: Carmel Drake

BNP: Inv’t In Logistics Assets Reached €662M In 2015

8 June 2016 – Mis Naves

According to the real estate consultancy firm, BNP Paribas, “2015 was an exceptional year” for the logistics sector in Spain, with total investment amounting to €662 million, whereby exceeding the figure recorded in the previous year to register the highest investment volume in the last eleven years.

The data available for 2016, corresponding to the first quarter, confirms this rising trend, with total investment exceeding €320 million between January and March 2016 – this figure essentially relates to three large portfolios: Metrovacesa, Zaphir and Prologis.

For the analysts at BNP Paribas Real Estate, the good performance of consumption and industrial output, which began three years ago, has continued to boost the logistics market in 2015 and so far in 2016. Moreover, the shortage of high quality products has led to a slight increase in income and above all, to a stabilisation of prices. Thanks to the availability of land, new developments may go on the market at these rental prices. For this reason, the consultancy considers that 2016 offers good opportunities for buying and selling logistics assets.

It is worth highlighting two key milestones that are shaping the evolution of the logistics real estate sector and boosting the strong outlook for this sector.

On the one hand, 2014 and 2015 were the years when the highest ever investments were made in logistics warehouses. More than 50% of the high quality logistics warehouses changed hands during that period. The market saw a generational change in owners, with the disappearance of some and the appearance of others. The latter group includes international investors, which have been positioning themselves in the market, including several specialists, such as Prologis, which have strengthened their positioning; and the Socimis, which have secured capital overseas and invested it in this segment to create significant portfolios of logistics warehouses. During the first quarter of 2016, the main Socimis and funds interested in logistics assets invested around €320 million.

On the other hand, consumer habits have changed with the crisis, which has led to a very significant increase in the volume of purchases made online, to the detriment of in-store shopping. In this vein, e-commerce is growing at an average rate of 20% p.a.. To the extent that the volume of purchases made online increases, so too does demand for logistics spaces designed to provide support for these types of businesses. In 2015, around 17,000 sqm of logistics space was leased for e-commerce use. Even so, in Spain, online shopping accounts for just 3% of overall consumption, which reflects the potential for growth in the country, above all if we compare it with other markets such as Germany and the UK, where e-commerce accounts for 10% and 13.5% of all shopping, respectively. (…).

During 2016, consumption is expected to continue to grow with the same energy, along with the leasing of logistics space. Income will continue to increase and yields will continue to decrease due to the shortage of high quality logistics products. The e-commerce business will grow and so too will demand for cross-docking and XXL warehouses. The main Socimis and funds will continue to expand their portfolios with logistics assets. (…).

Original story: Mis Naves

Translation: Carmel Drake