The rapid growth of logistics real estate continues as demand keeps outstripping supply, even as the volume of new building construction has skyrocketed.
According to the latest quarterly analysis by Proprius, in the third quarter of 2023 alone, a total of 120,000 square meters of new buildings were absorbed by the market. Throughout 2022, new logistics real estate leases amounted to 250,000 sq.m., while already in the first nine months of 2023 the absorption of new premises is estimated to have reached approximately 240,000 sq.m.
According to Proprius’ analysis, the bulk of demand comes from third-party logistics (3PL) companies, which focus on high-end real estate and automation. These allow for accurate and fast delivery times.
Rents are also on the rise, recording an increase of 5% year-on-year, not only due to high demand, but also thanks to the increase in construction costs, which has been transferred to a certain extent to the cost of renting. Moreover, the average yield has already fallen from the double-digit percentages of previous years, to just 7%, an indication of market maturation.