2023-10-27-莱坊-Spain_Logistics_Snapshot_Q3_2023_2页_731kb

Logistics Snapshot Summary - Q3 2023

Core Content

This summary provides an overview of the logistics market in Spain, focusing on the Madrid and Barcelona regions, as well as the national investment trends. The data is compiled quarterly by Knight Frank Spain's expert team, based on real market data and trends.

Occupier Market

Madrid

• Take-up levels: 300,000 sq m in Q3 2023, a 50% increase compared to Q3 2022.
• Year-to-date take-up: Nearly 700,000 sq m, aligning with 2023 forecasts of a slight slowdown compared to 2022.
• Expected annual take-up: Around 1,000,000 sq m, reflecting the market's resilience and adaptation to new consumer habits.
• Supply side: Approximately 311,000 sq m of new developments were delivered in Q3 2023.
• Vacancy rate: Increased slightly to 6.4% (from 5.7% in Q2 2023).
• Grade A vacancy rate: 4.2% (from 3.20% in Q2 2023).
• Prime average rent: Remains at €6.50/sqm/month, with upward trends in submarkets like Illescas, San Fernando, and Torrejón.
• Top 3 occupancy deals:
  • 50,000 sq m | Toledo
  • 38,100 sq m | Guadalajara
  • 31,500 sq m | Madrid

Barcelona

• Take-up levels: 66,500 sq m in Q3 2023.
• Year-to-date take-up: Over 390,000 sq m, which is 30% less than the same period in 2022.
• Vacancy rate: Remains low at 3.00%, shaping the market's take-up levels.
• Prime average rent: Not explicitly provided, but the market is influenced by low vacancy.

Investment Market

Spain

• Investment volume Q3 2023: €280 million, compared to €960 million in Q3 2022.
• Year-to-date total investment: Over €900 million, representing nearly 20% of the total investment in Spain.
• Decrease compared to 2022: A 55% drop due to the lack of large portfolio transactions.
• Investment distribution:
  • Secondary markets accounted for 45% of the total investment.
  • Madrid and Barcelona each represented 30% and 20%, respectively.
• Prime yields:
  • Madrid: 5.25% (up from 5.00% in Q2 2023).
  • Barcelona: 5.15% (up from 5.00% in Q2 2023).
• Top 3 investment deals:
  • €65.8M: Several locations, Vendor: Mileway, Purchaser: AB Sagax, Capital value: 715 €/sq m.
  • €45.5M: Murcia, Vendor: Hansainvest, Purchaser: Panattoni, Capital value: 1,030 €/sq m.
  • €28M: San Fernando de Henares, Madrid, Vendor: Barral, Purchaser: Hines, Capital value: n.a. €/sq m.

Europe Prime Yields (Q2 2023)

Note: The data is sourced from Knight Frank Research and includes logistics, office, retail, PRS, and hotels.

Key Contacts

• Jorge Sena – Partner, Head of Commercial
  Email: jorge.sena@es.knightfrank.com
  Phone: +34 600 919 004

• James Cowper-Coles – Director of Logistics Capital Markets
  Email: James.Cowper-coles@es.knightfrank.com
  Phone: +34 600 919 105

• Adrián Romero-Amich – Director, Logistics Leasing and Development
  Email: adrian.romero-amich@es.knightfrank.com
  Phone: +34 600 919 125

• Daniel Caprarin – Head of Research
  Email: Daniel.caprarin@es.knightfrank.com
  Phone: +34 600 919 087

Summary of Key Information

• The logistics market in Madrid has shown strong take-up with 300,000 sq m absorbed in Q3 2023, up 50% from Q3 2022.
• Year-to-date take-up in Madrid is nearly 700,000 sq m, and the market is expected to absorb around 1,000,000 sq m by the end of 2023.
• The vacancy rate in Madrid increased to 6.4%, while Grade A vacancy remained at 4.2%.
• Barcelona recorded 66,500 sq m of take-up in Q3 2023, with a 30% decrease year-over-year, but it remains supported by a low vacancy rate of 3.00%.
• Investment volume in Spain reached €280 million in Q3 2023, down 55% from Q3 2022.
• Secondary markets dominated the investment landscape, accounting for 45% of the total investment volume.
• Prime yields in major markets have increased in response to the new interest rate environment, with Madrid at 5.25% and Barcelona at 5.15%.
• The largest acquisition of the quarter was AB Sagax purchasing a 19-warehouse portfolio for €66 million.
• The most notable sale was Panattoni selling a logistics park in Murcia (46,000 sq m) to Alfil Logistics.