Valencia’s Logistics Market will Incorporate 6+ New Platforms in 2019

14 May 2019 – Valencia Plaza

The logistics real estate sector in Valencia is on a roll. At least that is according to a study conducted by Triangle Real Estate Management, which highlights the plentiful supply in the province, in particular in the Riba-Roja and Cheste areas.

Construction is currently underway on three new logistics platforms, spanning 53,000 m2 in total, in the town of Riba-Roja, which are expected to be completed in Q3 2019. Moreover, work has already been finished this year on three other logistics properties in Paterna, Torrent and Loriguilla, with a combined surface area of 40,000 m2.

In addition, there are eight other projects in the pipeline to build turnkey properties, spanning a total surface area of 261,123 m2, which will be ready 9-12 months after they have been signed.

Stock of properties

On the other hand, the report details that the total stock of properties available for storage in the Valencia area spans a surface area of more than 2.5 million m2, of which 60% is located in the Valencia Logistics Corridor, comprising the municipalities of Riba-Roja, Loriguilla and Cheste. However, most of the available surface areas are “old, small properties”.

Land under development

The Valencian logistics market also has 6 million m2 of land available for development, in other words, land that is buildable and classified as industrial but pending the completion of one or more urban planning procedure. 75% of that land will be developed over the long-term, in other words, in more than 5 years time.

Rental prices

Market prices have risen in recent months due to the shortage of supply. Asking prices in the prime areas along the A-3 (Riba-Roja, Cheste, Loriguilla and Quart de Poblet) amount to €4.5/m2/month, compared with €4.25/m2/month in the area around the Ford Almussafes factory and €3.75/m2/month in secondary areas and places such as Sagunt.

Original story: Valencia Plaza (by Begoña Torres)

Translation/Summary: Carmel Drake

BNP Paribas: Valencia’s Logistics Stock Set to Rise by 100,000 m2

12 February 2019 – Valencia Plaza

The logistics capacity in the province of Valencia is going to increase by 99,457 m2 this year with the launch of five new platforms located in Riba-roja, Torrent, Paterna and Loriguilla, according to the latest report from BNP Paribas Real Estate.

Moreover, there are locations that will offer the possibility of “turnkey” constructions with a total constructed surface area of more than 200,000 m2.

The purchase price of logistics space has risen to €200/m2-€220/m2 in the most sought-after locations due to the interest in the purchase of land from property developers and investment funds, in an area where available logistics space currently accounts for just 2.8% of the total, and 77% of that surface area is located in Riba-roja.

Due to the lack of availability, maximum rental prices have increased slightly to reach €4.5/m2/month in Riba-roja.

In 2018, demand for logistics space remained high and 24 operations were signed, three more than during the previous year. The most sought-after area was Riba-roja, which accounted for 30% of the space leased.

Nevertheless, last year closed with 127,502 m2 of logistics space leased, a very similar figure to the average for the last four years although somewhat lower than in 2017 (by 30,000 m2).

The fourth quarter of 2018 saw high leasing activity and accounted for 43% of all of the surface area leased during the year.

Original story: Valencia Plaza 

Translation: Carmel Drake

Prologis To Invest €30M In New Logistics Centre In La Ribera

25 April 2017 – El Mundo

The period of lethargy in the logistics sector has come to an end. With a growing demand that far exceeds supply, the US-based multinational Prologis is planning new projects in the Community of Valencia. The company, which is headquartered in San Francisco, inaugurated the first phase of a centre on the Valencia Logistics Park (Parque Logístico de Valencia or PLV) last week and is now finalising the construction of another large project in Massalavés, in the Ribera Alta region. This warehouse will have a constructed surface area of 60,000 m2 on a plot measuring 90,000 m2, according to the Director General for Prologis Iberia, Gustavo Cardozo.

Unlike the property inaugurated in Riba-roja, which the logistics multinational has constructed at its own risk to offer it under lease, the park in Massalavés will be constructed jointly with an operator to whom the new venue will be delivered turnkey. Negotiations with the interested company are very advanced, although Cardozo managed to avoid revealing the identity of the company in question. The project will be carried out on a plot of land that Prologis acquired in 2005, but which has been undeveloped since the outbreak of the crisis.

The Director General of the company in Spain estimates that the investment relating to this project will amount to €30 million, although the impact of Prologis in the region will be higher. In addition to that figure, there is the amount that has been allocated to the construction of the two modular warehouses in Riba-roja (€20 million). This centre, whose first phase is already operational, will generate 170 direct jobs, according to the Councillor for Homes and Public Works, María José Salvador, who cut the ribbon at the inauguration ceremony. Also in attendance at the inauguration were the Director General of Prologis for the South of Europe, François Rispe, as well as the mayor of the town, Robert Raga. (…). According to Raga, the new tenants will move into a plot of land measuring 27,000 m2, which until now had been owned by the Town Hall.

Over the last two years, commercial operations have resumed with a bang on this logistics industrial estate, which the Generalitat developed back in the day. Under this legislature, around 130,000 m2 have been sold, compared with just 10,000 m2 during the previous one. These facilities, located next to the bypass, less than 25 km from the Port of Valencia and 10 km from the airport, are receiving interest from investors, according to the Director General of Prologis, who also thanked the Valencian Government for the powers it has granted to enable this first phase to be executed in just over a year from the date the plots were acquired. (…).

The Riba-roja operation is the first that the US company has undertaken at its own risk in Spain since 2009. Prologis purchased 70,000 m2 of land in July 2016 and by November, had begun construction of the first warehouse, which is divided into four 6,000 m2 modules so that it can be rented out to a single operator or to various. According to Cardozo, it does not look like marketing this space is going to be a problem, given the high level of demand for logistics facilities in this area.

Such is the case that construction is expected to start on the second phase within the next few months. The twin warehouse will also have a surface area of almost 24,000 m2.

Original story: El Mundo (by Francisco Álvarez)

Translation: Carmel Drake