18 April 2018 – Las Provincias
The logistics business in the Community of Valencia skyrocketed last year. Logistics investment in Valencia doubled to exceed €60 million in 2017. The increase was driven primarily by large operations such as the purchase by TH Real Estate of Carrefour’s platform in Ribarroja and the acquisition by P3 Logistics of another platform that had formed part of GreenOak’s logistics portfolio.
That is according to a report compiled by the real estate consultancy CBRE, which places Valencia behind Madrid and Barcelona in the ranking of cities based on interest from funds in investing in logistics. On the other hand, leasing of logistics space also reached a new record in Valencia in 2017 with more than 220,000 m2 of space transacted.
The study reports that the logistics stock in Valencia amounts to 2,244,000 m2, of which just 20% may be considered as prime or maximum quality product. This increase is due both to the construction of new logistics warehouses and the renovation and adaptation of old industrial warehouses for this new use.
Lack of supply
Despite the delivery of more than 65,000 m2 of newly-built logistics warehouses, the availability rate decreased to 4.3% in 2017. The data shows the increase in demand for large spaces (measuring more than 10,000 m2, which accounted for 50% of the space leased last year). By area, the region to the north of Valencia accounts for the highest percentage of available industrial space with 13,200 m2 (6.4%), followed by the central area with 53,100 m2 (9.7%) and finally the south with 30,500 m2 (5.1%).
Ribarroja is still the most sought-after area with the highest leasing volumes. In fact, 15 of the 27 operations recorded in 2017, which together saw 125,000 m2 of the surface area contracted and which represented 60% of the total space leased (were located there). The continuous increase in demand and the scarce supply of quality products has caused prime rents to increase by 25% to €51/m2/year.
The centre of Valencia saw the highest price rises for both land, between €150/m2 and 225/m2, and rent, between €3/m2/month and €4.25/m2/month. The north and south regions recorded similar rental prices, between €2.75/m2/month and €3.90/m2/month, although the southern region was slightly more expensive than the north with prices of around €200/m2.
Original story: Las Provincias (by Á. Mohorte)
Translation: Carmel Drake