According to the Forcadell Market Report, the lack of available product, together with rent increases sum up the factors that prevent a greater contracting growth.
The Logistic Market Report published by Forcadell confirmed take-up for the Q4 2019 reached a volume of 124.572 sqm, taking the total annual figure to 589.924 sqm. Although it is 11% lower respect the past fiscal year, it is altogether a good result, aligned with the evolution of the past years. Lack of availability of triple A warehouses ranging from 5,000 to 10,000 sqm in the 1st and 2nd Rings, together with higher rents are the major deterrents for an increase in contracting.
Analyzed by zones, and according to Forcadell’s market research, the number of transactions registered in the Q4 has risen to 13, with 5 in the 1st Ring (52,891 sqm) and 8 in the 2nd Ring (71,681 sqm).The 3rd Ring has not registered transactions in this Q4 2019. The increase in contracting in the 1st Ring is linked to two turnkey projects that have increased the stock in an area of maximum demand.
As for distribution of by rings in the whole of 2019, in the 1st Ring 29% of transactions averaged 12,053 sqm; 61% occurred in the 2nd Crown with an average of 9,303 sqm; while the remaining 10% took place in the 3rd Crown with an average per operation of 9,901 sqm.
According to Forcadell’s Market report, new construction warehouses or turnkey projects have accounted for 48% of the total area contracted in 2019. These are very positive figures but reveal a current lack of available second-hand warehouses. The most relevant transactions have been the 46,000 sqm turnkey multi-storey logistics warehouse that Goodman will build for DSV in Molins de Rei; the 19,039 sqm ALC Logistics transaction in Parets del Vallès and the 14,039 sqm Carreras has contracted in Vilafranca del Penedès.
Asking rents in this Q4 remained stable at €7 / sqm in Prime Zone, between 5 and 6 € / sqm in the 2nd Ring and around 3.5 in the 3rd Ring. Gerard Plana, Forcadell’s Industrial-Logistics director confirmed, “e-commerce has led to a change in the consumption process that makes logistics warehouses into the main leaders. Due to this issue, buying pressure continues to reduce the expectation of profitability of warehouses that drops yields from 6% in triple A products and long-term leases.”