Real estate consultant Knight Frank highlighted the good moment the segment is going through, as seen on its Snapshot Logística report for the first quarter of the year on which were included the first weeks of confinement.
Investment during the first three months of the year corresponded to more than 210 million euro, surpassing the average registered for the same period during the last ten years. In Madrid’s case, these numbers were around 105 million euro on the 31st of March, 26% more than in 2019. Knight Frank’s prediction is for investment to continue growing during the coming months, since, despite the confinement, since the beginning of the crisis operations worth a total of more than 60 million euro were concluded in Spain. Besides, ongoing operations which had to be delayed because of this situation would have represented more than 300.000 sqm.
As indicated by the consultant, it is expected for these assets to keep attracting investors, due, amongst other reasons, to the importance the segment achieved following the Covid-19 crisis. «To all this, we should add that Spain is the European country with more people living in cities (80% of the population), which points towards an exponential increase in demand for last-mile logistic assets», it can be read in the document.
This document shows that the operators were contracting more terrains at the beginning of the year so as to quickly meet the demand for storage and distribution. Thus, during the first quarter, Madrid registered an uptake close to 120.000 sqm, 18% more yoy, whereas in Barcelona contracting came close to 105.000 sqm.
During this period the prime rents remained stable in Madrid and Barcelona, as well as the availability rates, which showed limited offer in the main logistic clusters, 6% and 3.5% respectively.