The Spanish logistics market

The Spanish economy posted moderate growth in 2023, impacted by high inflation and rising interest rates. Logistics demand in Spain continues to be underpinned by robust long-term fundamentals. However, in 2023 it was impacted by market uncertainty, which slowed decision-making processes in some cases, and by weaker activity by e-commerce operators. When macroeconomic conditions improve and consumer spending picks up, which is expected to be in the second half of 2024, retailers and e-commerce operators will see stronger market activity and contribute to driving up take-up levels.

Despite the economic uncertainty, demand will continue to be driven by strategic supply chain improvements, ESG criteria, the efficiency of last-mile deliveries and the growth of new manufacturing sectors. As for the growth in prime rental levels in the logistics sector, there was a widespread increase throughout Europe in 2023 as a result of higher construction and financing costs, as well as the strong demand for quality warehouses in prime locations. Both the Madrid and the Catalan market posted the steepest increase in prime rents for the last five years in 2023 to stand at the highest levels since 2009-2010. We expect ongoing upward pressure on prime rental levels in 2024, with a more moderate pace of growth over the next three years.

Download our report 'The Spanish Logistics Market' and find out more about the performance of the logistics sector in 2023.