According to CBRE of Spain, the Spanish logistics real estate market recorded record levels of investment attraction and the volume of contracts concluded in September 2022 (end of the third quarter). In the first 9 months of the year, the sector received more than 2.05 billion euros, and the volume of the real estate area involved in the framework of contracts concluded on the market exceeded the mark of 2 million square meters.
In both cases, this segment of the Spanish real estate market has record figures on hand. In particular, the logistics segment, which received $2.05 billion in investments, showed a 24% increase compared to the same period in 2021. Market participants expect to break even more records by the end of 2022.
Medium-sized businesses and enterprises are beginning to play an important role for the logistics market. Of the total number of transactions, 26%, worth more than 20 million euros, fell on such investors. Geographically, the key main points of development are Madrid, Barcelona, Valencia, Bilbao, Malaga and Seville. The Head of the Industry and Logistics Department at CBRE Spain indicates that institutional investors are also interested in this property.
The figure of 2 million square meters is also an increase over the same period last year — 8%. However, specifically for the third quarter of 2022, 548,000 square meters came into circulation, which is 1% less than in the same quarter last year, when the volume reached 555,000 square meters. Nevertheless, the volume of the area involved in the conclusion of investment transactions for all 9 months remains the highest in the last 10 years.
The e-commerce industry also plays an important role in the logistics real estate market. In the total volume of investments in this industry, 15% came, which is, however, less than last year's figure — 21%. On the one hand, there is a significant shift from «COVID economy», in which e-commerce felt at the forefront of economic growth, but on the other hand, the market still demonstrates the consolidation of demand from these investors.
In connection with all this, CBRE predicts an active growth in demand for logistics real estate rentals this year. Although there are factors that may cause slightly lower results than those recorded in 2021. In the current conditions, the company's analysts are confident that a reduction in construction volumes is inevitable, the deficit will grow, and with it prices. The growth of rental rates in the next 3 years should be 13%. In elite areas it can be even higher.
The consulting company also predicts an increase in the profitability of investments in this segment of the Spanish market in 2023. Due to the factors already mentioned, as well as general economic factors. A greater understanding of what the yield will actually be will be provided by data on the valuation of assets on the market in late 2022 — early 2023.