Fernando Aban Benito, Director of the Logistics Department, gives us his vision on the current situation of the logistics real estate market.
What is your assessment of the evolution experienced by logistics real estate in the last two years?
In general, there is greater activity in the logistics market in the last two years, especially in the markets of Madrid and Barcelona and lately in Valencia, due to the attraction of capital by investors and the increase in demand, which has led to a slight increase in the incomes of these markets. This, together with the construction of new logistics projects at risk, confirms that the logistics sector has evolved in a positive manner.
What are the most important changes that have taken place in the supply chain and how do they influence logistics spaces?
The main changes in the supply chain are focused on becoming more efficient and above all more profitable and therefore specialization is very important. It directly influences, since the key to logistics lies in the need to improve customer service, therefore, there are key aspects in terms of optimizing logistics space, which affects the quality of service and the cost savings. These aspects range from the height of the warehouse to be able to stack the maximum possible heights, the ratio of springs, width of the ship, maneuvering fields comfortable enough to be able to maneuver, picking areas, etc.
On the other hand, it is worth noting the importance that the logistics of e-commerce is charging, which will cause an increase in the need for space for companies, which will increase their volume of stock in storage to the detriment of stock in store. However, since we are in the initial phase of change, it is difficult for operators to anticipate the specific need for space.
Do these changes accelerate the obsolescence of part of the stock?
Indeed, adapting to the needs of customers, has led to the development of new quality logistics projects, which have better specifications than the existing buildings to date. In addition, aspects that have traditionally not been relevant, such as the sensitivity of companies for sustainable assets and with energy efficiency certificates, are becoming very important.
What is the level of current income and what trend do you expect to follow?
The current average level of income in the Community of Madrid, is distributed as follows:
1st Crown: 4.25 / 4.75 € / m²
2nd Crown: 3-4 € / m²
3rd Crown: 2.5 / 3.30 € / m²
It is difficult to predict the future trend. However, our forecasts contemplate a sustained growth in income levels. We understand that this growth will be stable but not excessive.
Are we facing a reactivation of the promotion of new developments? Is there soil prepared for them?
Yes. New developments have been carried out in the municipalities of Torrejón de Ardoz, Cabanillas del Campo and Getafe, in whose start-up ProEquity has actively participated, demonstrating this fact. On the other hand, we have identified a shortage in the market of finalist land suitable for housing developments of large logistics projects. For this reason, we believe that it could be a good time to order new developments of this type of soil.
What have been the reasons why this logistics real estate segment has entered the focus of most investors?
The logistics investment segment has attracted the interest of investors for two fundamental reasons. On the one hand, this segment offers higher rates of profitability within the real estate market and requires less management. On the other hand, major investors need to diversify their asset portfolios so as not to concentrate investor risk in a single segment.
What would you highlight about the activity of Proequity in the last 12 months?
I would highlight mainly having been involved both in the creation and in the sale to investors of practically all the logistic projects that are currently being executed both in the Community of Madrid and in Castilla La Mancha. Within these projects we can highlight:
Sale to investor and commercialization of 50,000 m² of logistics area built in Torrejón de Ardoz.
Sale to investor and marketing of 152,000 m² of logistics area built in Cabanillas del Campo.
Sale to investor and commercialization of 58,000 m² of logistics area in the Business Area “Los Gavilanes” of Getafe.
Likewise, we have advised on important logistic investment operations such as the sale by Royal Metropolitan to SEGRO of a multi-inquilino in Coslada of 19,000 m² or the sale to an investor of the TXT platform in Getafe. On the other hand, we have intervened in some of the most representative investment operations in other segments that are not logistics. Specifically, the sale of the building located in C / Cuesta de San Vicente, 28 and several operations included in the Retail High Street segment in the streets of Jorge Juan de Madrid and C/ Aribau de Barcelona.
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