• Spanish Logistic Market Overview 2023

    April, 2024

The logistic sector recorded a total investment volume c. €1.5 billion (-35% vs. FY22). FY23 has inclined towards the relocation of investment away from Madrid and Barcelona markets, with more than 40% of investments located in secondary locations. 25% of this year’s transactions were sale & leaseback transactions and 27% allocated in middle market segment.

Logistic take-up reached 830,000 sq.m. in Madrid (-15% vs. FY22) and 533,000 sq.m. in Catalonia (-20% vs. FY22). These adjustments were within the forecasts, since the uncertainty in the market has been translated in delays of decision-making processes. The strength of Spanish logistic sector, thanks to emerging patterns in consumer purchasing and stable consumption levels, have limited the impact.

Average rents increased in FY23 between 5% and 10% vs. FY22. In most locations, the shortage of supply in prime areas has pushed up prime rents. Madrid registered €6.5/sq.m./month and €7.5/sq.m./month in Catalonia. The fundamentals of logistic sector remain strong despite changes in socioeconomic context, with new high specification floorspace being delivered to the market with no end user. Vacancy rates remain low at 8% in Madrid and 7% in Catalonia.

In terms of yield, the continued rise in interest rates has put upward pressure in the prime net yields, reaching average levels of 5.35% (+60 b.ps. vs. FY22). Forecasts suggest that slight adjustments may be made to adapt to the market reality, although the rate reduction forecasts will favor stabilization by mid-year.