Italian 9-month logistics volumes highest on record - Savills

Demand for logistics space in Italy remains high, with investment volumes for the first three quarters of 2022 up 67% year-on-year, the highest on record, according to Savills.

After offices, logistics was the most traded asset class (28% of total volumes) and chalked up the highest number of transactions (57), 14 of which related to portfolios.

Over 75% of investments were concentrated in North Italy, with Verona and Milan being the main destinations, with 45% of volumes since the start of 2022 (not including assets in mixed portfolios) and 29 transactions.

International capital was responsible for 83% of total volumes since the beginning of 2022.

Carlo Walder, head of industrial & logistics at Savills said: ‘The market continues to show resilient characteristics: the lack of innovative product and the record volume recorded in the rental market are pushing up rents and supporting investment. As a result of increasing uncertainty, investor demand may decline in the coming months, although 2022 will close with record volumes.’

The rental market remained positive in Q3 2022 with about 600,000 m2 leased (+34% y/y), taking the total absorption in 2022 to over two million m2, up 15% on 2021 and the highest ever figure recorded in 9M.

A total of 119 lease transactions were registered, of which 34 closed in Q3.

Third-party players accounted for over half of demand for logistics space, with the most active players being retailers, couriers and e-commerce players.

North Italy attracted the most interest, with the Pavia-Piacenza cluster, for example, being the most in demand (26%), while Milan and Rome also saw strong uptake, reaching more than 650,000 m2 overall.

Emerging clusters, such as Bergamo-Brescia and Parma-Reggio Emilia, are becoming increasingly attractive, accounting for 24% of total absorption in 9M 2022.

Prime rents continued to grow in Q3 in the main markets, with Milan and Rome reaching their highest level in 10 years (€60 m2/y), a trend that Savills expects will continue.


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