9 January 2018 -Eje Prime
The logistics sector is starting 2018 with a bang. The industrial sector is soaring, after breaking records last year, with the leasing of 876,000 m2 of space in Madrid, its strongest location. That figure represents an increase of 80% with respect to 2016 and is the highest recorded in the last decade, exceeding even the 800,000 m2 of space that was leased in 2007, according to data from the real estate consultancy Cushman & Wakefield.
Similarly, the number of operations signed in relation to the purchase of warehouses and logistics centres amounted to 66, whereby exceeding the 50 recorded in 2016, and the average size of the surface area leased was 15,000 m2.
The areas bordering the A-2 and the A-4 were the most sought-after, as reflected by the influence that they had on the total volume of space leased in Madrid as a whole: the first area accounted for 60% of all operations, whilst assets located along the road to Valencia accounted for another 26% of transactions.
That significant increase in the sale of logistics land also resulted in a rise in prime rents. 2017 closed with an average price per square metre of €5.25/m2.
Meanwhile, in Barcelona, 450,000 m2 of logistics space was leased during 2017, which represents a decrease compared to 2016 when 645,000 m2 of space was leased, primarily because two large operations were registered during that year, with the arrival of Amazon and Mango, which incorporated warehouses with surface areas of 200,000 m2.
In the Catalan capital, by contrast, prime rents rose by 12.5%. The latest data shows an average price per square metre of logistics space of €6.25/m2 in the Mediterranean city. That rate is the highest of any of the capital cities in Southern Europe and is one of the highest on the continent. London is still the most expensive enclave for leasing warehouses and logistics centres with a price per square metre of around €15/m2.
Original story: Eje Prime
Translation: Carmel Drake
The post C&W: 876,000 m2 of Logistics Space was Leased in Madrid in 2017 appeared first on Aura Real Estate Experts.
Source:: AURA Real Estate Experts