During 2016, there was an important contraction in yields from 7% at the end of 2015, to values approximating 6% in 2016. The Aguirre Newman report also points out that, during the past year, developers have returned to the start of the real estate chain.
Madrid
In Madrid, logistics take up registered in 2016 exceeded 404.280 m2, representing an increase of 10.8% in respect of the previous financial year. During the last trimester of 2016, demand for logistics space was more than 191,994 m2, a take up total for logistics space which is the highest in recent years, specifically 15% higher than the last trimester of 2015 and five times more than registered in the third trimester of 2016.
In 2016, 41 projects were carried out. The maximum rent achieved in this last trimester of 2016 was 5.6 €/ m2/month, in a project in Coslada. Rents in the Prime zone increased slightly to levels 5-5.5 €/ m2/month.
According to Aguirre Newman, during the last trimester of 2016 the good performance of the demand for industrial assets in logistics continued, as well as an improvement in retail price levels.
The San Fernando de Henares zone was the area where the sales of land were greatest and, therefore, more short and medium term projects were initiated.
Barcelona
In Barcelona, logistics take up in 2016 totalled 758,632 m2, a growth of 38% compared to the previous financial year and the best year ever recorded. During the last trimester of the year, take up rose to 212,667 m2, 33.3% more than the previous trimester, divided between 16 projects.
Aguirre Newman reported that the relevance in 2016 of ‘key in hand’ projects must be stressed, a consequence of the existing low levels of supply of large land areas, and a reflection of investor interest in the logistics real estate market in Barcelona and its sphere of influence, which continues very high.
Thus, a reactivation of the land market would be appreciated in consequence of the growing age of the logistic land available, the lack of investment opportunities and the good performance of demand.