Savills: Logistics Leasing in Madrid Rose by 2% in 2018 to Exceed 935,000 m2

14 January 2019 – Savills Aguirre Newman

The logistics market in Madrid has registered a new leasing record. The boost from e-commerce has been the main driver behind the absorption of 935,000 m2 of space in 2018, which represents an increase of 2% with respect to the historical record figure in 2017, according to data from Savills Aguirre Newman.

During the last quarter, 23 operations were signed involving more than 300,000 m2 of space, compared with 24 operations and 308,000 m2 of space during the same period in 2017. During the year as a whole, 77 operations were registered in 2018, compared with 70 during the previous year. It is worth highlighting the importance of the cross-docking activity during 2018, where seven operations were closed.

In terms of rental prices, the €8/m2/month peak that established the annual maximum was recorded at T4 (Airport) in Barajas. Excluding that figure, due to the uniqueness of the Barajas market, maximum rents exceeded €6/m2/month in a cross-docking operation in San Fernando de Henares. The incorporation of new high-quality projects that are adapted to the requirements and expectations of the operators have favoured an increase in prime rents to €5.5/m2/month (+7% YoY).

In terms of the size of the operations, almost 50% of the space leased during the last quarter of the year was concentrated into four operations spanning more than 30,000 m2 each, all of which were signed in the third ring.

By area, the distribution of the surface area leased between October and December was very homogeneous, with 55% and 45% registered in the Corredor del Henares and the southern area, respectively, although the Corredor del Henares continued to capture the most demand. The distribution in terms of the number of operations clearly showed the superiority of Corredor del Henares, which accounted for 70% of all activity (16 operations).

The annual analysis by area reveals a similar picture. The volume of surface area leased was very similar (>495,000 m2 in Corredor del Henares and >408,000 m2 in the southern area), but by number of operations, Corredor del Henares again accounted for the bulk of activity (48 operations versus 22 in the south).

Activity in the land market is continuing to gain weight. During 2018, 34 operations were signed in total spanning 1,800,000 m2 (+60% YoY). It is worth highlighting the three areas that accounted for almost 50% of the land surface area operations: Guadalajara (>350,000 m² in 2 operations), Illescas (>326,000 m² in 4 operations) and Torija (>279,000 m² in 4 operations).

The year closed with an availability rate of 6.9%, which represents a decrease of almost two points with respect to 2017. During 2018, more than 650,000 m2 of space was incorporated into the market, of which 67% was already committed. The future supply for 2019 will exceed 1,500,000 m2, of which 30% already have pre-rental contracts.

The dynamism in the market for users of the logistics sector during 2018 has been reflected in the investment market, with 45 operations exceeding €1.3 billion. Those figures mark new records in the historical ranking. The number of transactions involving individual assets stood out since it exceeded the figure recorded in 2017 by three times.

Original story: Savills Aguirre Newman 

Translation: Carmel Drake

Eurofund Logistic Capital Partners Acquires a 130,000 m2 Plot in Corredor de Henares

15 October 2018 – Eje Prime

Eurofund and Logistic are continuing to push ahead together in the Spanish logistics sector. The joint venture, created by the two groups in 2017, Eurofund Logistic Capital Partners (Elcp), has purchased a plot of land measuring 130,000 m2 in the Corredor de Henares for the development of a new logistics project on the site, according to explanations provided by the company to Eje Prime.

The plot is located in the third ring of Madrid, on a large industrial estate in Torija (Guadalajara), with direct access to the A2 motorway, one of the main logistics axes in Spain that links Madrid and Barcelona.

Elcp is going to develop a Class A logistics project spanning 80,000 m2 on the site. Located 30 minutes from Barajas airport and 45 minutes from the centre of the Spanish capital, the land is “one of the few available buildable sites with the capacity to house a new building of this size”, said the Director-General of LCP, James Markby.

Marketing of the project, which is going to be a turnkey development, will begin immediately. On the same industrial estate in Torija where it has purchased this land, Eurofund Logistic already owns logistics centres leased to large multinationals such as Primark, Leroy Merlin and Bridgestone, amongst others.

During the nine months to September, logistics leasing in Spain amounted to 1.38 million m2, up by 17% with respect to the same period in 2017. In parallel, investment exceeded the €1.1 billion threshold during the first nine months of the year, up by 43%, according to data from the consultancy firm CBRE.

In Madrid, 632,000 m2 of logistics space was leased, almost equalling the figure recorded during the same period in 2017. Of that amount, more than 50% of the assets corresponded to operations involving warehouses with a surface area of more than 20,000 m2.

Eurofund Logistic: almost 1 million m2 under management

The latest purchase by Eurofund Logistic forms part of the growth plan that the company has underway in Spain and Portugal. Created in February 2017, the joint venture currently has 775,000 m2 of logistics assets under management.

Moreover, the joint venture is planning to start work on 650,000 m2 of logistics properties. One of the parties, Eurofund Capital Partners is a subsidiary of the Spanish group Eurofund, which, in addition to the logistics sector, also develops and manages assets, primarily in the retail segment.

Last week, Eurofund was given the green light for its new commercial macro-project in Lleida, as reported by Eje Prime. That project is known as the Torre Salses retail complex; it has a surface area of 56,000 m2 and construction of it will begin in the autumn of 2019.

Original story: Eje Prime

Translation: Carmel Drake