Spain needs to develop logistics land to cope with demand, experts say

• The rise of e-commerce and current consumer habits has led to an increase in demand for new logistics platforms.
• David Martínez, CEO of Proequity, warns that "logistics activity in Spain may experience a slowdown due to the scarcity of available land, coupled with the uncertain economic outlook we are currently experiencing".

Madrid, 13 April 2023. User consumption habits have evolved towards a greater need for immediacy, especially with the growth that e-commerce has experienced in recent years. This has led to an increase in the number of new logistics projects, with the aim of expanding surfaces to cope with response times and the high volume of operations, especially in last-mile deliveries, i.e. deliveries destined for the end consumer. In this line, experts from Proequity, a leading consultancy firm in logistics operations, warn that the lack of urban industrial land for logistics use may hinder the ability of companies to meet national demand.

The shortage of square metres has led to an increase in prices and is one of the main challenges that the Spanish supply chain will have to face in the coming years. Especially if we take into account that logistics land is one of the main assets of interest for national and international investors. To this end, professionals in the sector are calling for efficient public policies that make it possible to adapt and reform the land indicated, so as to allow the construction of storage facilities and the management of purchases and orders.

In this line, the exponential growth in demand for logistics land is a great opportunity for investment in infrastructure and job creation in Spain. Moreover, it is vital to guarantee an efficient and sustainable supply chain, in which costs and delivery times are reduced for the end consumer.

David Martinez, CEO of Proequity, warns that "logistics activity in Spain may experience a slowdown due to the scarcity of available land, coupled with the uncertain economic outlook we are currently experiencing". However, at Proequity they value the sector's drive for innovation and the implementation of new technologies and formats, "the promotion of logistics and industrial activity in new territories in the institutional sphere can be a key solution to solve the shortage of land," explains Martínez.