Tag: e-commerce

Investment in “Last Mile” Logistics Platforms Takes Off  

14 October 2019 – The boom in e-commerce is sparking a revolution in the logistics markets as industry players seek to increase the speed of deliveries. The ability to deliver goods quickly in cities such as Madrid and Barcelona is leading firms to acquire logistics platforms that are located close to city centres. Market watchers refer to the “last mile” – the final delivery of goods to the customer’s home. Thus, the industrial estates that surround Madrid and Barcelona are slowing being repurposed as logistics platforms. The most sought-after are less than 10 kilometres from the most central neighbourhoods.

In an example of the tendency, the Spanish real estate group Allegra recently finalised the sale of a logistics park in the Marconi industrial estate, to the south of Madrid in Villaverde. The logistics platform consists of two warehouses measuring 9,798 and 7,676 square meters, respectively. The US-fund Hines, one of the four most important real estate management companies in the world, acquired the asset for 22 million euros. It was Hines first investment in the logistics sector in Spain.

According to data from the real estate consultancy JLL, though the price of logistics assets in Barcelona are currently higher than in Madrid, €7/m2 on average, compared to €5.5 in the capital, Madrid is seen to have major potential. The allocation of such platforms soared from 185,000 square meters in the third quarter of 2018 to 290,000 m2 this year, an increase of 48%. JLL also estimates that developers are working on another half a million square meters of platforms in Madrid, compared to 182,000 square meters in Catalonia.

Original Story: ABC – Adrián Delgado

Adaptation/Translation: Richard D. K. Turner

Savills: Spain willl have 260,524 m2 of New Innovative Commercial Space in 2019

3 June 2019 – La Vanguardia

According to the latest edition of the Retail Report Spain, compiled by Savills Aguirre Newman, Spain will see the addition of new innovative commercial space spanning 260,524 m2 this year, where 10 new shopping centres are going to be developed.

In addition, the real estate consultancy forecasts that shopping centres worth up to €2.5 billion could be put up for sale, including Intu’s portfolio comprising four shopping centres, which are worth c. €1 billion. The pipeline also includes other non-prime shopping centres and portfolios of supermarkets and hypermarkets.

Nevertheless, the report forecasts that investment levels in 2019 will be lower than in the previous two years, as many overseas investors, particularly those from the UK and USA, adopt a ‘wait and see’ approach to the Spanish market in light of the slow-down in the world economy and the boom in e-commerce.

In this way, demand is expected to focus on small convenience centres, particularly those linked to supermarkets, and prime and secondary retail parks that are not so affected by e-commerce.

Original story: La Vanguardia

Translation/Summary: Carmel Drake

INBISA Completed the Construction of Logistics Projects Spanning 330,000 m2 in 2018

8 April 2019 – Press Release

INBISA Construcción completed the construction of logistics projects spanning 330,000 m2 in 2018, up by 80,000 m2 YoY, and has already handed over more than 110,000 m2 of completed logistics space so far this year.

The strong boost in the logistics sector across the country has contributed to the company’s growth, with operators in the retail and e-commerce sectors demanding much of the new space, especially in Madrid and Cataluña.

INBISA Construcción offers a complete service across all phases of the logistics process, from asset construction to property management, providing solutions to each one of its clients’ needs.

In recent months, the company completed the development of the Puerta Centro de Guadalajara industrial estate, an innovative logistics centre for Montepino Logística, a leading property developer in Spain in the development of turnkey projects, and Luís Simões, one of the country’s leading logistics operators.

Original story: Press Release

Translation/Summary: Carmel Drake

E&V: Co-working, e-commerce – New Niches Boom in the Spanish RE Market

2 April 2019 – El Confidencial

The Spanish tertiary sector is consolidating its position as one of the most attractive in the world. Investment rose by more than 10% in 2018 to €12.3 billion, boosted by overseas investors, who accounted for 65% of all operations, according to a report published by Engel & Völkers.

Moreover, this interest is set to maintain its momentum over the coming years. In 2019, logistics is expected to continue its upward trend in light of the unstoppable growth of e-commerce. In the office sector, experts forecast on-going diversification, with demand growing for regular offices on the outskirts of cities, as well as for co-working spaces in the centre of large capitals.

In the alternative asset segment, interest is also expected to continue, especially in nursing homes for the elderly and halls of residence for students. In the retail sector, multi-channel offerings are forecast to grow, with the most important brands concentrating their retail businesses into flagship stores in very central locations. Also, in the retail sector, the move by traditional out-of-town operators, such as Ikea and Media Markt, into downtown locations is expected to become more widespread.

In terms of rental prices for commercial premises, in Madrid, in the most sought-after areas of Salamanca, Chamberí, Sol, Chueca- Justicia and Malasaña, maximum prices amount to €90/m2/month, dropping to €55/m2/month in secondary areas and to €45/m2/month elsewhere.

Meanwhile, in Barcelona, prices are highest on the most sought-after streets, located in Ciutat Vella, Tapinería and Eixample. There, average prices range between €30/m2/month and €40/m2/month.

Original story: El Confidencial (by E.C.)

Translation/Summary: Carmel Drake

Commercial Premises on Calle Serrano & Paseo de Gracia are More Expensive Than Ever

28 March 2019 – Expansión

The “golden miles” of Madrid and Barcelona seem to be immune to the consumer crisis and the boom in e-commerce that is negatively affecting other high streets across the country, for the time being at least. In fact, business is booming on Calle Serrano and Paseo de Gracia, driven by demand from large international luxury brands, which are only willing to open their flagship stores on those two streets.

Recent arrivals on Calle Serrano include Salvatore Ferragamo, Bottega Veneta, Saint Laurent and Bang & Olufsen. Meanwhile, the newest tenants on Paseo de Gracia include Moncler, Loro Piana (LVWH), Isabel Marant, Antropologie and Christian Louboutin.

Moreover, demand is driving up rents on those streets. In Barcelona, prices on the golden mile rose by between 5% and 6% in 2018, to €275/m2/month, according to Ascana. In Madrid, the price increase was less marked, up by just 1%, but nevertheless, the average price amounted to €284/m2/month, a new historical record.

Original story: Expansión (by Marisa Anglés)

Translation/Summary: Carmel Drake

Iberian Capital & AEW Logistics Invest €150M in Torrejón de Ardoz

14 February 2019 – Eje Prime

E-commerce needs logistics and Torrejón de Ardoz is getting ready to host a new platform. The property developer Iberian Capital Corporation (ICC) and the US investment fund AEW Logistics are going to invest €150 million over the next four years in the development of a logistics park in the new Los Almendros Industrial Estate in Madrid.

The new platform will have a surface area of 37,818 m2 and will be available from the second quarter of 2020, according to Iberian Capital. The logistics park will be able to accommodate up to eight tenants, will have a free storage height of twelve square metres and 38 loading docks.

The location of the new platform is one of its main strengths, according to its promoters. Located in the Henares industrial and business corridor, the complex will be 13 kilometres from Madrid Barajas Airport and 21 kilometres from the centre of Madrid (…).

Original story: Eje Prime (by Roger Arnau)

Translation: Carmel Drake

Azora Launches a Vehicle to Invest €250M in Last Mile Logistics Hubs

9 January 2019 – Eje Prime

Azora is launching itself into the last mile logistics sector. The real estate manager has launched a vehicle to invest €250 million in premises located in the centre of cities with the aim of facilitating urban distribution and responding to the boom in e-commerce.

According to the company’s plans, the first investments will take place during the first quarter of this year. Azora will be responsible for the vehicle and will hold a minority stake in it. Meanwhile, the consultancy firm CBRE will be responsible for designing it and for supplying the real estate services, according to Expansión.

Until now, Azora and CBRE have identified almost thirty assets that fit their investment objectives until 2021. Currently, both companies are holding negotiations to purchase those properties, which include disused furniture stores, parking lots, dealerships, workshops and shopping centres inside the M-30 in Madrid and within Las Rondas in Barcelona. The properties must also have a surface area of more than 800 m2.

The assets will subsequently be leased to major logistics operators and to other transport companies, as well as to merchants and distribution companies under long-term lease contracts.

With more than €4.5 billion in assets under management, Azora is continuing to back the real estate sector after breaking its alliance with Hispania. Since then, the company has taken advantage of its experience in the sector to back the residential rental segment through the creation of a joint venture with CBRE Global Investment and Madison to achieve a portfolio of 10,000 homes within the next few years.

Original story: Eje Prime

Translation: Carmel Drake

Unifersa Buys a 42,000m2 Industrial Plot in A Coruña

4 January 2019 – Eje Prime

Unifersa is expanding its warehouse. The Galician company, which is dedicated to the wholesale of industrial supplies and professional hardware, has acquired a plot of land measuring 42,000 m2 in A Coruña to expand its facilities.

The company will initially invest €10 million in the new site located in A Larancha, which will replace the headquarters that the firm has in Fene and which occupies 10,000 m2. The physical growth of the firm thus accompanies the development of the business, whose turnover exceeds €20 million.

If the forecasts from the consulting firm Savills Aguirre Newman are confirmed, the logistics market will have closed 2018 with an investment of €1.2 billion, 42% higher than the result for the previous year. That figure is accompanied by new demands from companies in the sector, which are looking for centres with a 100% logistics profile, as well as trying to find spaces with potential for return.

Nevertheless, the progression of the Spanish logistics sector has its response in e-commerce, which has boosted the sector to make 2018 one of its best years. E-commerce is the main factor responsible for the good performance of the business, which firms such as Airbus, Mercadona and Amazon have joined with new centres.

Original story: Eje Prime

Translation: Carmel Drake

Savills: Cataluña will Add 340,000 m2 of Logistics Land to its Stock by 2020

7 December 2018 – Eje Prime

Cataluña is going to increase its stock in the logistics market. Over the next two years, the region is going to add 340,000 m2 of industrial land to its portfolio, of which 275,546 m2 will be incorporated in 2019, according to data from the consultancy firm Savills Aguirre Newman.

Next year alone, nine assets will be debuted, which will be available as leased spaces spanning a combined surface area of 164,746 m2. For 2020, several projects have already been signed with logistics operators, to incorporate 68,500 m2 into the logistics sector. In this sense, the consultancy firm expects to increase the signing of at-risk projects with a leading role for overseas funds, which are taking positions in land and investment operations.

This year, the Catalan logistics market has increased its stock of new surface area by 459,112 m2, a rise of 8.5% with respect to the previous year. It is an increase that responds to the strong performance of the sector, which closed the third quarter with 493,615 m2 of space leased, up by 56% compared to the same period in 2017. Those figures invite Savills Aguirre Newman to predict that 600,000 m2 of space will have been absorbed in total by the end of the year.

During 2018, some major logistics projects have been launched in the region, such as the 81,000 m2 complex built in La Bisbal del Penedès. That space is 68% occupied by ID Logistic, which has Kiabi as a tenant. Moreover, Sesé Logística and the e-commerce group Vente Privee have absorbed 50,000 m2 of space each.

The first ring and the centre are the preferred areas

By volume of operations, the first ring and the prime-centre are the two areas that have recorded the most activity during 2018. Those two areas registered joint growth of 50% during the third quarter, with 375,000 m2 of surface area leased.

The third ring was the only area that reduced its activity during the third quarter, with a decrease of 11.69%. Nevertheless, it will be the area that accounts for the greatest availability of consolidated warehouses in 2019, with three assets that will account for 52% of the total.

In terms of rents, rental prices have grown by 6.5% on average this year, whilst the availability rate in Cataluña currently amounts to less than 3%. In this regard, professionals from the sector who participated in a conference organised by the consultancy firm emphasised the need for public institutions to collaborate with the private sector for the development of new industrial and logistics areas.

Warehouse measuring between 2,500 m2 and 5,000 m2.

Currently, the most sought-after warehouses by the logistics market in Barcelona are assets measuring between 2,500 m2 and 5,000 m2. 31% of the spaces leased this year have involved warehouses of that size, compared with 27% of operations that have been signed for assets with surface areas of between 5,000 m2 and 10,000 m2.

The strong performance of the Catalan logistics segment is also being replicated in Madrid. In the vicinity of the Spanish capital, 637,000 m2 of space had been leased by the end of the third quarter, up by 4% compared to the same period last year.

Original story: Eje Prime

Translation: Carmel Draje

Mercadona Buys Land in Barcelona to Open its Second Warehouse for e-Commerce

20 November 2018 – Eje Prime

Mercadona is doubling its commitment to e-commerce in Barcelona. The Valencian supermarket chain has purchased a plot of land measuring 25,668 m2 in the municipality of Ripollet, where it is going to build a logistics platform to support its online business.

This new hive, which is what the group calls this new type of asset that it is promoting, will measure 14,650 m2 and will be the second establishment that the company has launched in Barcelona, after the premises it occupied in the Zona Franca, owned by Goodman, which is expected to be operational by 2020.

In Valencia, Mercadona already has a first warehouse specialising in online commerce. It is a platform with a surface area of 13,000 m2, which was inaugurated in May. The company led by Juan Roig is already looking for new locations in other parts of the country, primarily, in Madrid.

Original story: Eje Prime 

Translation: Carmel Drake