CBRE: 76,000 m2 of Office Space was Leased in Barcelona in Q1

10 April 2018 – El Periódico

During the first three months of the year, 76,000 m2 of office space was leased in Barcelona. That volume, which represents an increase of 4% with respect to previous quarters, is the highest seen in the last nine months, which means that, despite the political tensions, activity in the city’s office market is performing well. According to a report from CBRE, “companies are moving for very specific reasons and the appeal of Barcelona means that activity remains high. Currently, several large companies are evaluating new locations for their offices, which means that the forecast in the short and medium term for leasing remains good”, said Lindy Garber, Head of the Office Area at the real estate consultancy firm.

The most notable operations recorded during the first quarter include the rental of 6,500 m2 of office space by the Property Registrars in the BCN Fira District complex on Paseo de la Zona Franca; the move by the company Norwegian Air to Nike’s former offices on the Mas Blau industrial estate, where it is going to occupy 5,400 m2; as well as Pepsico Iberia’s move to its new offices spanning 4,900 m2 in the WTC Almeda Park complex. Like in most large cities, Barcelona is seeing an increase in demand from companies offering co-working space.

The volume of surface area available in the market continues to be low for another quarter. In the last year, the availability rate has decreased from 12.5% to 10.3%, and there is a shortage of large, high-quality spaces. Although several projects have been handed over in recent quarters, they have not been added to the new supply, since they were pre-leased before they even came onto the market. This practice is gaining ground due to the lack of available product in the market. On the other hand, the entry onto the market of Torre Glòries added around 27,000 m2 of available space in one of the most sought-after areas of the city, the 22@ district. Prime rents, which have risen by 35% since 2014, are continuing their upward trajectory, and now amount to €24/m2/month. Although that figure is still well below the peak of €28/m2/month reached in 2008, the rising trend is expected to continue in the medium term.

Investment market

During the first three months of the year, the office market recorded an investment volume of €121 million thanks, above all, to the purchase of Axiare by Colonial. This represents an increase with respect to the previous quarter when the investment volume amounted to €66.5 million. Nevertheless, despite the improvement in the investment figure with respect to the previous quarter thanks to the aforementioned operation, the political uncertainty is undoubtedly having an impact on the investment market.

Xavier Güell, Director of this area in Barcelona for CBRE, said that “during the last quarter of last year, investors suspended operations that they had underway because of that uncertainty; many returned to their purchase processes at the beginning of this year, but they remain cautious. Given that these processes require a certain amount of consolidation time, the operations will not be reflected in investment volumes until the second or third quarters”. Prime yields remain stable at around 4.25%.

Original story: El Periódico (by Max Jiménez Botías)

Translation: Carmel Drake

Ryanair Opens its Digital Hub in Madrid’s Eurobuilding II

30 November 2017 – Expansión

Ryanair has arrived in Azca. The Irish low-cost airline has leased 2,000 m2  of space in the Eurobuilding II, located in the heart of the Spanish capital’s financial district for its largest technological hub.

“It is an ideal location in one of the largest technological cities, with highly qualified people; plus, it is home to some of the greatest technological innovators in Europe”, said sources at the airline.

Ryanair, which avoided specifying the amount that it will spend on the new offices, chose Spain for the launch of its third digital innovation centre – it has two others in Dublin and Wroclaw – back in May.

The project will result in the creation of 250 jobs – 50 people have already started – with the aim of streamlining the low-cost airline’s web and the app. Travel Labs Spain is looking for all kinds of profiles, from data engineers to developers to experts in social media.

In the new offices, Ryanair’s employees have rest areas with pool tables, table football and a Star Wars game.

Prime area

The building, located at number 69 Calle Orense, is located in the capital’s Central Business District.

According to data from the consultancy firm JLL, the average rent in the CBD of Madrid amounted to €30.75/m2/month at the end of the third quarter of the year. The owner of the Eurobuilding II is the Mutualidad General de la Abogacía, the pension fund of Madrid’s lawyers’ association, which had more than 194,000 members at the end of 2016 and more than €5.9 billion of resources under management.

The other tenant of the building, which is very close to Paseo de la Castellana, is the Vaughan Language School, which leases more than 4,500 m2 of space for teaching, with more than 95 classrooms.

The Eurobuilding II was acquired by the Mutualidad General de la Abogacía in 2003 for €30.9 million. According to the latest available appraisal report, the value of the property amounts to €43.8 million.

Original story: Expansión (by Y. Blanco and R. Arroyo)

Translation: Carmel Drake

CBRE: 57% More Logistics Space Leased In Madrid During First 9 Months Of 2017

9 October 2017 – Eje Prime

Demand for logistics space in Madrid is soaring. During the first nine months of the year, 633,000 m2 of logistics space was leased, which represented an increase in demand of 57% with respect to the same period last year, according to data from CBRE. This rise in the volume leased was due not only to an increase in the number of transactions closed but also due to a rise in the number of transactions involving large surface areas.

233,000 m2 of logistics space was leased between July and September this year, of which 173,000 m2 (or 74%) related to the e-commerce sector. The most important operations carried out during the third quarter included the turnkey project in Illescas, with a surface area of 103,000 m2; the Leroy Merlin operation in Meco, spanning 59,814 m2; and the CEVA deal in Seseña, with a total surface area of 12,000 m2. In terms of the prime rent in the local distribution area, it remained at €5.25/m2/month.

In Barcelona, demand also remained very high and the lack of available spaces in the first and second ring alone, where the vacancy rate is just 0.5% and 1.6%, respectively, prevented the volume of new space leased from continuing at record levels, in line with the last two years.

In this sense, 80,000 m2 of logistics space was leased during the third quarter of 2017, down by 29% compared to the previous quarter (112,000 m2). In terms of the cumulative figure for the half year, more than 317,000 m2 of space was leased, 57% less than during the same period in 2016. The most important operation during the quarter was the rental by Naeko of a logistics warehouse with a surface area of 20,000 m2 in La Bisbal del Penedès.

In terms of prices, prime rent continued at €6,50/m2/month in the Catalan capital, although that figure is expected to rise over the next few months, due to the stark lack of available space.

Original story: Eje Prime

Translation: Carmel Drake

Record Breaking Logistics Leasing In Madrid In H1 2017

19 July 2017 – CBRE

400,000 m2 of logistics space was leased in Madrid during the first half of 2017, which represents an 117% increase in demand with respect to the same period a year earlier, according to data from CBRE, the largest real estate consultancy and services company in the world.

In fact, the total registered figure so far this year almost equals the amount for the whole of last year, when 404,000 m2 of logistics space was leased. Specifically, 269,000 m2 of logistics space was leased between April and June whereby doubling the figure recorded in the previous quarter (130,000 m2).

According to Alberto Larrazábal, National Director of Industrial and Logistics at CBRE, “this increase in leasing volumes is due, primarily, to the increase in the number of transactions involving large surface areas, which has been strengthened by a phenomenon that has increasingly more influence in society and which is revolutionising this sector in particularly: namely, e-commerce”.

Some of the most noteworthy operations closed during the first six months include DSV in Cabanillas del Campo, covering a total of 49,800 m2, the XPO in the same town, covering 47,934 m² and the deal closed in Getafe, covering a total surface area of 58,215 m2. The last few months have also seen Transaher close an operation in San Fernando de Henares, measuring 42,000 m², and Miquel Alimentació lease space in Torrejón de Ardoz, covering 20,372 m².

In this sense, the A-2 and A-4 motorways are where most of the space was leased during the first half of 2017 in the area surrounding the capital. Specifically, the A-2 accounted for 62% of the space leased (249,000 m2), followed by the A-4 (118,000 m2).

In terms of prime rent in the local distribution area, it remained stable at €5.25/m2/month.

In Barcelona, meanwhile, 112,000 m2 of logistics spaces was leased during the second quarter of 2017, 10% less than during the previous quarter (125,000 m2). In terms of the cumulative figure for the half year, it exceeded 237,000 m2, which was 40% lower than the volume recorded during the same period last year.

Nevertheless, it is worth mentioning that a turnkey operation was closed by Amazon in El Prat de Llobregat in Q2 2016. Thus, if we exclude that operation from the comparison, 23% more logistics space was leased in H1 2017, which indicates a positive trend.

The most noteworthy operations closed in Barcelona during the first half of 2017 included the rental of a 34,000 m2 warehouse in Martorelles to Segro, the leasing of 17,000 m2 of space on the Anoia Industrial Estate to GV El Zamorano, and the pre-lease operation by the company VIBIA to Clape Group, involving a surface area of 14,000 m2 in Gavà. In addition, MediaPost signed a turnkey operation with Solvia to construct a 12,000 m2 warehouse in Polinyà (…).

Finally, the prime rent remained stable at €6.50/m2/month in Barcelona, although it is expected to increase over the next few months, due to the clear absence of available space.

Original story: CBRE

Translation: Carmel Drake

Investment In Offices Soars By 85% In H1 2015 To €1,300M

21 July 2015 – Expansión

Real estate investment in office buildings soared by 85% during the first half of the year to reach €1,300 million and whereby record “one of the best results in the last twenty years”, according to data from Aguirre Newman.

Madrid accounted for three quarters (75%) of the total investment, which was mostly concentrated in the business district of the capital.

Aguirre Newman attributes this remarkable increase in real estate investment (which does not include Merlin’s purchase of Testa), to the “consolidation of the growth of the economy”, the “return” of financing and the prospects of recovery in office rental prices in Spain, which are currently offering higher returns that investing in the stock market.

The firm considers that this “strong investment activity” will continue during the second half of the year, given the operations that are currently in the pipeline, such as the sale of Torre Espacio, one of the four skyscrapers in the Cuatro Torres business district, which the Villar Mir Group is looking to sell, but continue to occupy as the tenant (…).

Socimis and institutional investors led the real estate purchases during the first half of the year – they accounted for almost two thirds (65%) of the total acquisitions made.

On the sales side, financial institutions, insurance companies and institutional investors were the main sellers of property.

The interest shown by investors in office buildings has stemmed from the recovery that the sector is experiencing. During the first half of the year, the rent paid for those kinds of buildings increased by 23.7% in Madrid and 49% in Barcelona.

During H1 2015, in the capital, lease contracts were signed for offices with a total surface area of 262,790 m2 and in Barcelona, the figure was 177,499 m2.

Therefore, the average price of rents continued to rise, to reach €25.35/m2/month in Madrid, where prime rents are now €31/m2/month; meanwhile the average rent in Barcelona is €15.96/m2/month.

Aguirre Newman is confident that the increases in demand for office space and in office rental prices will continue for the next few months.

Original story: Expansión

Translation: Carmel Drake

CBRE: Investment In Logistics Sector Equals €205M In YTD15

5 June 2015 – ABC

The industrial and logistics sector recorded an investment volume of €205 million during the 5 months to June, i.e. double the amount recorded during the same period last year, as a result of eight transactions, according to data from the real estate consultancy, CBRE.

One of the most important transactions was Rockspring’s purchase of two logistics warehouses under construction in Torrejón de Ardoz from Montepino, with a surface area of 49,000 m2, which will be completed during the first quarter of 2016.

The increase in purchase activity has resulted in a rapid compression of prime rents, which now stand at around 7%, down from 8.50%-8.75% in 2013.

Last year, the hiring of logistics space in Madrid reached almost 400,000 m2, the highest figure seen in the last 4 years; whilst in Barcelona, more than 200,000 m2 was hired during the first quarter of 2015, showing a strong performance even during the worst years of the recent crisis.

In this sense, CBRE believes that rentals in Barcelona during the first half of 2015 may equal the figure recorded for the whole of last year.

The Corredor del Henares continues to be the favourite area for logistics companies in Madrid; whilst in Barcelona, demand is still primarily distributed between the “segunda corona” or ‘suburbs’ (Vallés Oriental y Occidental) and the “tercera corona” or ‘greater metropolitan area’ (the provinces of Gerona and Tarragona).

CBRE expects the buy-side pressure to continue, with the entry of a greater number of players, all in an environment characterised by greater ease of access to financing.

Original story: ABC

Translation: Carmel Drake