Savills News

Record year for logistics investment and take up in Spain in 2018

Take up and logistics investment figures hit record highs in Spain, according to a new report from Savills Aguirre Newman.

According to data from the international real estate advisor, investor interest has reached a peak with volumes exceeding €1.5bn in the whole of Spain and the number of deals standing at 46 – both figures represent the highest level ever reached.

With regards to take up levels, 2018 ended with the highest ever take-up in Madrid, surpassing 935,000 sq m (+3.5% compared to 2017) with a total of 77 transactions (eight more than the previous year) – see Graph 1. As a result, the vacancy rate has fallen to 6.9% (from 8.6% at the end of 2017). In Barcelona, it was the second best year ever with take-up volumes up 44% compared to 2017. 


Antonio Montero, National Director of the Industrial Agency Division, Savills Aguirre Newman, comments: “The logistics market is rapidly gaining importance as a global asset class as a result of the current growth and expectations from e-commerce. Investment levels and take up figures are at their highest ever and, with 1.6m sq m of new supply expected in 2019 in Madrid and 272,000 sq m in Barcelona, we can expect this year to be equally successful.”

Although investor activity has largely been concentrated in Madrid and Barcelona which collectively represent 50% of the investment volume, secondary markets including Valencia, Seville and Zaragoza are continuing to attract institutional investors. The former is considered to be the third largest logistics market in the country, coming after only Madrid and Barcelona. 

The achievable yield for prime assets remains at 5.5% for both Madrid and Barcelona, although specific transactions have been undertaken below this level. The yield in secondary locations remains at levels close to 6.25%.

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