The Italian logistics real estate market remained dynamic in the second half of 2019, with rental values generally stable for new properties and rising for used ones.
The scenario emerges clearly in the new Borsino Immobiliare della Logistica – H2 2019, the logistics report created by World CapitalIn partnership with Nomisma.
The study shows that logistics operators are increasingly seeking larger spaces: 50% of them are interested in properties between 5.000 sq m and 15.000 sq m, followed by 36% looking for properties smaller than 5.000 sq m, and 14% seeking properties larger than 15.000 sq m. The average duration of negotiations is 8-12 months in 50% of cases, followed by 33% closing within 8 months. The discount rate, however, is between 10 and 20% in most cases (65%).
Focusing on the rental values of new properties, we note that compared to the last semester the trend is generally stable, with interesting positive variations in the locations of Turin (4,4%), Parma, Livorno and Olbia (4,8%) and Genova (3%).
Milano and Rome remain stable in average values, while the Milanese city records a growth of 2% for the rent maximum.
While the values of new properties remain generally stable, those of used properties are clearly growing, with the best performances recorded in Parma (+6,8%) and Bergamo (+ 6,5%)
The Italian prime rent is taken over in the location of Firenze, where a newly built logistics building has a rent of €63/m2/year. follows Genova with a rent for the new one of €62/m2/year.
Looking at the national average rent in the second half of 2019, the recorded value is equal to €42,08/m2/year.
To offer a complete reading that places the dynamics of the logistics real estate market within a broader analysis of the territorial context, the H2 2019 edition of Borsino Immobiliare della Logistica sees the collaboration with Nomisma renewed and dedicates an entire section of the Report to the index Italy2Invest by Nomisma – the innovative information tool that provides an assessment of the attractiveness of Italian territories.
The index Italy2Invest – which defines the attractiveness of a territory as a synthesis of 8 thematic areas (Environment, Socio-Economic Conditions, Businesses and Credit, Real Estate Market, Population, Public Administration, Services – Equipment and Expenditure, Tourism) – establishes Milano as the most attractive province in Italy (score value 72,7 out of 100).
Among the first locations the index Italy2Invest rewards Milano, Rome and Firenze. The 3 provinces on the podium have an index value of, respectively, 72,7, 68,5, 66,5 out of 100.
The strong ability to generate interest among investors is one of the distinctive elements of the first locations: 8 out of 10 provinces analysed present Nomisma I2I score values higher than the Italian average (55,6).
“ In a phase of increasing investment diversification, logistics confirms itself as a reference asset class for operators, despite – in some cases – the compression of yields could represent a critical factor” declares Luca Dondi , CEO of Nomisma.
“In 2019, the logistics real estate sector recorded an investment volume of over 1,3 billion euros, a figure that confirms the great appeal of logistics assets today. - declares Andrea Faini, CEO of World Capital – In particular, investors today are oriented towards versatile and flexible properties, capable of meeting any type of need.”
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