Miguel Angel Falcón, Managing Director of Lysander Spain, joined the panel of guests at the colloquium of the INMOLOGISTICA 2022 Forum, organised by Cesine Jornadas and Metros 2 Magazine. The event took place in the auditorium of the “Torre Foster”, under the patronage of Pérez Llorca.
The Forum featured a number of specialist speakers from various areas of the logistics sector and several guests, including representatives of institutional investment funds, REIT’s, developers, builders, consultants and professional associations.
Speakers discussed the enormous success that the sector has had in recent years, especially since the start of the pandemic, driven by online sales and the need for greater stock by operators. The main indicators of this success have been the sharp drop in the vacancy rate in Madrid and Barcelona, a slight rise in rents and a significant compression of “yields”. In this sense, the logistics sector is perceived by investors as having the same or less risk as other real estate sectors. It has generated great interest so that larger investment volumes have been transacted than in other sectors.
The main challenges facing developers are the lack of good quality land, the increase in its price and, above all, construction prices. It is also worth noting the concern expressed by speakers and guests about the lack of agility on the part of the administrations so that the term factor continues to generate great uncertainty for both developers and end-users. This is particularly important when there is land under development, major refurbishments of existing assets or multilevel warehouse projects.
Operators and users face an environment in which a rise in rents will be inevitable to compensate for the increase in construction costs, the growing regulatory complexity and the uncertainty of the processing times for licenses and legalizations or, if necessary, of the previous development of the land, as well as of the terms of execution of the works due to the lack of supply of equipment and materials.
It should be noted that there was a greater presence of operators/users in the event and that there is increasing sophistication on the part of these and the developers. Aspects which are becoming increasingly important include:
• The unique characteristics of each final client and their impact on speculative products or a greater interest of developers in “Built to Suit” projects.
• Visibility and brand image but without losing functionality or adaptability to different users.
• The human scale and its impact on design and specifications.
• The ESG criteria and, where possible, to the highest standards.
Without a doubt, a very interesting day that showed the strength of the logistics sector, the high degree of professionalism that governs it and the future potential it has.
Miguel Angel Falcon, May 19, 2022