• Real Estate Trends: Last-Mile Logistics

    September, 2023

The logistics sector is experiencing significant growth, primarily driven by the rise of E-Commerce. Nowadays, most shops have an online section where people not only browse but also make purchases, creating a compelling opportunity for the logistics sector.

Savills reports that Spain exhibits strong fundamentals and promising prospects in the medium to long term due to high demand and comparatively lower prices than other European countries. In H1 2023, the total investment in the logistics sector surpassed €427 million, and Savills projects that the total investment in FY 2023 could surpass €1,000 million. The ‘sale and lease back’ transactions accounted for 16 operations in H1 2023, similar to H1 2022 with 17 and H2 2022 with 14 operations. The low vacancy rate of just 7% in Spain highlights the sector’s resilience, which can be attributed to Spain’s strategic location, offering shorter distances between Europe and America, and the influential role of the Mediterranean Sea, particularly in cities like Barcelona and Valencia.

Within the logistics sector, one of the most raising important segments is Last-Mile Logistics, which refers to the final step of the delivery process from a distribution center to the end-user. The Global Last Mile Delivery Market is projected to reach a substantial valuation of €357.45 billion by 2031, with an impressive Compound Annual Growth Rate (CAGR) of 10.17% during the forecast period from 2023 to 2031.

Last mile delivery plays a crucial role in the supply chain, ensuring swift, seamless, and efficient transportation of goods to the end-users. Various enterprises and industries provide last mile delivery solutions, facilitating direct shipments from company outlets or distribution centers to designated customer locations within specified timeframes. The increasing prevalence of internet and e-commerce transactions, especially in emerging economies, has significantly boosted the demand for parcel delivery, further fueling the growth of the last mile delivery market.

The future of both the logistics sector, in general, and Last-Mile Logistics, in particular, appears highly promising and dynamic. The rapid growth of E-Commerce and the continuous evolution of consumer preferences towards online shopping will continue to drive demand for efficient and reliable logistics services. As Spain showcases strong fundamentals and strategic advantages, such as its geographic location and connectivity, it is well-positioned to attract continued investments and contribute to the growth of the logistics industry in the coming years. Additionally, the projected expansion of the last mile delivery market globally indicates significant opportunities for logistics companies to capitalize on this vital segment of the supply chain and cater to the evolving needs of consumers and businesses alike.