According to Knight Frank, a total of €8.8bn was invested in Spain’s commercial property in 2015, the highest figure since 2008. The year 2015 was a record in terms of investment volume in Spain, increasing by 13% in comparison to the previous year.
By sectors, offices and retail remain the most popular segments for investors. High street and shopping centres recorded €4.6bn, accounting for 52% of investment. Offices accounted for €3.3bn, representing 38% of investment. The logistics sector has grown exponentially, mainly due to higher yields, reaching record levels of more than €850m in 2015. Nevertheless, the hotel sector is close behind thanks to the strong recovery of the tourist sector - both national and international.
Humphrey White, partner head of commercial property Spain, Knight Frank, commented: “Forecasts for this year suggest that investment levels will remain slightly lower than in 2015, although a greater number of transactions are expected. Essentially we are facing a lack of product, not investor demand.”
By investor type, investment funds and SOCIMIs have been the most active, accounting for more than half of all investment (55%). Active in Spain since 2013, SOCIMIs have increased their market share to become one of the main players in the sector, driving the market in the process. Nevertheless, the gradual increase in private investors and family offices taking on more commercial property exposure remains noteworthy. In 2014, private investment accounted for 5% of all investment, while in 2015 this figure reached almost 14%.
In terms of investor type, opportunistic investors have gradually been disappearing as the market has moved on. Prime and core plus investors have taken their place and have increased their market share (43% and 28% respectively), traditionally operating in more stable and conservative markets. Value add investors are especially active, accounting for 27% of the market.
By country of origin, the lion's share of investment has been carried out by local investors (47%), bearing in mind that SOCIMIs are considered local investors, despite the fact that much of their equity comes from international investors. France, the US and the UK are still the main players in the Spanish commercial property sector. The Philippines stands out for the size of a sole asset investment (Torre Espacio, in Madrid for €558m).
