• CG Capital Europe: Spanish Logistics Sector in 2022

    April, 2023

Logistic sector in Spain has had another great year driven by its strong market momentum (e-commerce boom intensified since FY21) andthe demand of logistics assets. Total logistic investment during FY22 amounted to c.€2.3 billion (very close to historical FY21, and +c.40% vs. last 5 years average).

Core+ was the most demanded asset type (+50% of transactions), investment funds were the most active players (c.70% of all the transactions)and international capital led logistic investments (c.95% of total market).

After reaching historical minimum levels in FY21 (3.75%), market led to a decompression of prime yields to 4.75% both in Madrid/Central Area and Catalonia,finalising the compression trend started in FY13 (yields at c.8%). It is forecasted a stabilisation in the levels of 5.0%-5.50%.

As a consequence of the strength of demand, Madrid’s prime rents increased to €6.25/sq.m./month (+c.5%), while in Catalonia, prime rents increased to €7.50/sq.m./month (+c.7%).

Take-up in Madrid reached c.1,232,000 sq.m. (+c.19% vs. FY21, record year), and c.815,000 sq.m. in Catalonia (well above the historical average). Vacancy rates decreased in Madrid to c.6.4% (-c.3.2%) and remained constant in Catalonia in c.3.1%.

The market has added 700,000 new sq.m. in Madrid and 260,000 sq.m. in Catalonia, while for FY23 there is a total of 998,000 sq.m. and 449,000 sq.m. under construction, respectively.