The high absorption rate and lack of new supply have reduced the vacancy rate in Madrid to 6.3%, according to the consultancy firm Savills.
At the beginning of 2023, more than 100,000 square meters of logistics area were contracted in Madrid, after two consecutive record years. 2022 Reached more than 1.26 million square meters contracted, which represents an increase of 5% compared to the previous year.
The high absorption and the lower entry of new offers have placed the vacancy rate at 6.3%, marking a new all-time low. The figure is also almost three percentage points lower than the historical average, located at 9.2%, according to Savills. According to data from the real estate consultancy, the number of operations in 2022 rose 7%. The sectors that registered the greatest activity were food, textiles and urban delivery related to electronic commerce. It is the first time that the industrial and logistics market in Madrid exceeds one million square meters contracted in a year without new spaces contracted by Amazon.
Currently, the logistics stock in Madrid stands at 12.03 million square meters, after adding 520,200 square meters in 2022, which represents 44% less than the new offer incorporated in 2021, mainly due to the delay in the delivery of new projects due to the rise in construction costs, as well as the processes of obtaining licenses. For this year, Savills expects a further 1.2 million square meters to enter the market, of which 30% are already committed. On the other hand, from the consultancy they point out that the high price of land, construction costs and financing costs are causing a slight upward trend in rents, although the market remains at healthy levels and the volume of new projects of quality is perfectly acceptable, according to the levels of contracting in recent years.
In this sense, Savills has highlighted the increased importance of ESG for investors and operators, and the foreseeable greater interest in demand for newly built assets with sustainability credentials compared to obsolete assets. Latest news on industrial & logistics Flex installs its headquarters in a warehouse of more than 11,400 square meters in Getafe. The operation consisted of a turnkey transaction carried out by the Estinvest family office, of the Esteve family. CBRE has commercialized the project. Recalvi and Pick & Pack Systems rent two modules of a logistics platform in Madrid. The leased modules have an area of 2,338 and 2,318 square meters, respectively. Heylen Warehouses buys land in Illescas to build a 15,000 square meter warehouse. The company has acquired its first piece of land in Spain to develop a fully sustainable platform.