Logistics land development: a priority for the sector

David Martinez, CEO of Proequity.

Madrid, 2 May 2023. According to data provided by CNCM Data, the segment ecommerce 18.19 billion in the second quarter of 2022, 33% more than the previous year. This rapid growth of the online sales format has led to a change in the way people consume, evolving towards a greater need for immediacy on the part of the customer. As a result, immologistics projects were on the rise in line with the ecommercebecoming one of the main assets in the sector. This development, specifically, meant a total of 2,820,000 square metres contracted in Spain in 2022, 8% more than the previous year. These new projects arise with the aim of expanding the amount of surfaces to cope with the demanding customer delivery times and the high volume of operations.

However, taking into account that, according to Statista data, it is estimated that online commerce will increase by another 25% by 2025, reaching 37 million users, and in order for the sector to grow in line with current and future demand in a sustainable manner, the creation of new industrial land must be a priority. We must bear in mind that logistics activity in Spain may experience a slowdown due to the scarcity of available land, and this, together with the uncertain economic outlook that we are currently experiencing, may harm the sector.

In this sense, the real estate market is facing a great challenge. The current shortage of square metres is leading to an increase in prices, becoming one of the main problems that the Spanish logistics sector will have to face in the coming years. If an effective solution is not found, we run the risk of hindering the capacity of companies to meet national and international demand from clients and suppliers, leading to a break in the supply chain.

That said, if approached in the right way, this exponential growth in the demand for logistics land can become a great opportunity to ensure the consolidation of the sector. This is why both public and private entities must remain proactive in order to favour the growth and development of new land dedicated to logistics activity. In this way, it would be possible to turn the threat into an opportunity and ensure the evolution of a strategic sector for attracting investors and creating employment.

It is also important to highlight innovation and the implementation of new technologies within the sector as a valid solution to the lack of land. New formats and the use of cutting-edge technology are increasingly common in the latest operations and in the creation of new industrial land, but there is still a lot of work to be done to ensure a real impact.

Finally, the development of logistics and industrial activity in new regions can be a key resource to overcome the shortage of land. Until a few months ago, territories such as Madrid, Catalonia and Valencia were the main hubs of logistics activity in our country. However, new territories such as Malaga, Seville, Zaragoza and Vitoria have experienced great progress in the development of logistics. This helps the progress of new projects to meet the demand and provide a solution not only to the lack of land, but also to strengthen the economic development of the area.

To ensure this, it is important to have efficient policies and plans that make it possible to adapt and reform land of interest to logistics activity. In addition, the incentive and attraction of new investors is crucial to promote the construction of storage facilities and the management of purchases and orders. This point is especially relevant considering that logistics land is one of the main assets of interest for national and international investors, and is becoming more and more relevant within the real estate sector.   

Ultimately, the creation of new square metres is vital to ensure an efficient and sustainable supply chain. This will reduce costs and delivery times for the end consumer. Overall, the service offered would improve and with it, the bottom line.