Spanish Logistics Market Overview in Q1 2023
The first quarter of 2023 registered an important rebound compared to the previous quarter, accounting to more than €270m in logistics investments in Spain.
In Madrid, the investment volume in the first quarter reached c. €170m, representing over a third of the total logistics investment in the country. Prime yields have risen slightly this quarter to 4.70%, with forecasts for a slim increase over the course of the year.
On the vacancy side, there has been a decrease in Q1 2023 and the vacancy rate stands at 6.1% (c.8% in Q1 2022). Whilst prime rents stood at €6.50/sq.m./month in Madrid, take up in the logistics market reached c. 225,000 m² during the first quarter of 2023.
Barcelona closed Q1 2023 with an investment in the logistics sector of c. €80m, a considerable increase compared to figures from the same period in 2022. Alongside with Madrid, prime yields in Barcelona stood at 4.70% in Q1 2023.
The vacancy rate decreased to c.3%. The limited supply available means that operators have less bargaining power at the same time as area requirements are increasing. As a consequence, the prime rent increased to €7.40/sq.m./month at the end of Q1 2023, the highest level registered since 2011.