Space still attractive
There remains strong demand for logistics properties in Italy, as a transaction completed at the end of March shows.
The real estate developer CBRE Global Investors recently expanded its holding in Italy. The company bought an entire portfolio, made up of a 40,000 m² logistics centre, another 194,000 m² compound, and another site that offers the prospect of developing 80,000 m² more for additional logistics use. The portfolio concerned was sold to CBRE by the Italian construction company Techbau.
The 40,000 m² logistics centre is in the municipality of Turate, which is lo cated roughly equidistant between the cities of Como and Milan. The facility has been leased out to an Italian retailer for nine years. It is conveniently located near a motorway junction and so has good links both in Italy and to Switzerland, and countries north from there. The undeveloped 80,000 m² property is located in Castrezzato, east of Milan. CBRE Global Investors is planning to build a logistics distribution centre there; operations are scheduled to start at the end of 2020. The real estate developer emphasised that the Castrezzato site also guarantees good connections, especially to eastern Lombardy and to the cities of Venice and Verona.
Size not the only criterion
Logistics real estate has become increasingly attractive and is characterised by strong demand and low vacancy rates of around 3%. This boom is also likely to be slowed down by reactions to the outbreak of Covid-19, but it isn’t expected to come to a complete standstill.
The positive overall development of the sector is also reflected in a report by property developer World Capital, assessing H2 / 2019. The study showed that logistics companies in Italy are increasingly looking for larger spaces. Half of all of the transactions examined are for logistics areas covering 5,000–15,000 m², with the number of enterprises requiring such facilities also increasing steadily. 14% of all of the transactions involve areas larger than 150,000 m².
Locations in and around Milan remain very attractive, although other cities are also catching up. Existing logistics properties in Florence and Rome saw the largest increases in rents in the period under review. The cradle of the Renaissance and the national capital are obviously steadily evolving into the most attractive locations – after Milan.
