2023-05-12-莱坊-Spain_Logistics_Snapshot_Q1_2023_2页_660kb

Logistics Snapshot Summary - Q1 2023

Core Content

This summary presents a snapshot of the logistics sector in Spain, focusing on key market indicators, investment trends, and rental dynamics in major cities such as Madrid and Barcelona.

Market Overview

Prime Rents Growth

• Madrid and Barcelona have both experienced sustained growth in prime average rents, driven by increased construction and financing costs and limited availability of high-quality logistics properties.
• In super prime areas of Barcelona, such as El Prat and Sant Boi, rents have reached €10/sq m/month.

Occupancy Trends

• Madrid recorded a take-up of 225,000 sq m in Q1 2023, representing a 15% decrease compared to Q1 2022, but a 250% increase from pre-pandemic levels.
• The vacancy rate in Madrid ended Q1 at 6.1%, but for grade A assets, it dropped to 2.8%, indicating strong demand for new developments.
• Barcelona also saw strong take-up, with 225,000 sq m in Q1 2023, showing a similar trend to Madrid in terms of growth compared to pre-pandemic levels.

Investment Market

Investment Volume

• The total investment volume in Spain for Q1 2023 was €322 million, a 35% increase from the previous quarter.
• Secondary markets are becoming more attractive for investment, with Pais Vasco & Cantabria (€73M), Barcelona (€35M), and Valencia (€33.5M) being the top three investment deals.

Capital Value and Purchasers

• Uvesco's sale of three logistics warehouses to Angelo Gordon for €73 million was the most notable transaction of the quarter. This deal was part of a Sale & Leaseback, with the vendor remaining a tenant for 20 years.
• The assets are located in the Basque Country (Guipuzcoa) and Cantabria.
• The capital value of the Uvesco deal was €955/sq m.
• In Barcelona, the capital value for the top investment deal was €1,600/sq m, while in Valencia it was €750/sq m.

Prime Yields

• Prime yields in Spain's major cities continue to rise.
• Barcelona reached 4.95%, and Madrid reached 5%.
• In Europe, prime yields in Q1 2023 were:
  • Londres: 5.00% (equal)
  • Amsterdam: 4.85% (upward)
  • Frankfurt: 3.80% (downward)
  • Berlin: 3.95% (downward)
  • Paris: 4.25% (equal)
  • Dublin: 4.75% (equal)

Key Contacts

• Jorge Sena - Partner, Head of Commercial

  • Email: jorge.sena@es.knightfrank.com
  • Phone: +34 600 919 004

• Adrián Romero-Amich - Director Leasing and Development Logistics

  • Email: adrian.romero-amich@es.knightfrank.com
  • Phone: +34 600 919 125

• James Cowper-Coles - Director Capital Markets Logistics

  • Email: James.Cowper-coles@es.knightfrank.com
  • Phone: +34 600 919 105

• Rosa Uriol - Head of Research

  • Email: rosa.uriol@es.knightfrank.com
  • Phone: +34 600 919 114

Additional Information

• The sector indicators are compiled quarterly by Knight Frank Spain based on real data and market trends.
• The research is available at knightfrank.com/research.
• The document includes charts and graphs showing take-up trends, average prime rents, and investment volume for Spain and selected European cities.