Overview of the Spanish Logistics Market 2020
The logistic sector has been one of the key sectors in Spanish Real Estate in 2020, standing out as a highly resilient and attractive asset class (especially last-mile logistics). Investment volume in the Spanish logistic sector in 2020 amounted to c.€1.500 million, c.17% decrease vs. 2019, explained by several unusually large portfolio transactions in 2019 (such as the €425m portfolio sold by Colonial to Prologis) and the Covid-19 lock-down.
Logistic prime rents in Madrid have increased slightly standing at c.€6.3/sq.m./month (c.+2% y-o-y), remaining stable in Barcelona at c.€7.0/sq.m./month. Prime yields are at all-time lows, standing at c.4.75%-5.00% in Madrid and Barcelona, following the compression trend started in 2013 (c.4.75% vs. c.8.00% net yields in 2013). Take-up in Madrid amounted to c.935,000 sq.m. (c.+73% y-o-y), reaching c.415,000 sq.m. in the case of Barcelona (c. -30% y-o-y). Vacancy rates slightly decreased, standing at c.8.5% in Madrid (-20 bp y-o-y) and c.3.0% in Barcelona (-25 bp y-o-y) amounting warehousing stock to c.10.6 and 6.8 million sq.m. respectively.