The Italian logistics market set a new investment record in H1 2022, reaching €1.8 bn (+147% year-on-year), according to Savills Italian Logistics Spotlight report.
This figure accounted for 30% of total volumes for the six-month period, with 38 transactions, 13 of which related to portfolios.
Northern Italy was responsible for over 85% of the transaction volumes, with Verona being the primary destination, registering 31% of volumes and six transactions, including the largest – the sale of the Oppeano logistics portfolio for around €270 mln.
Most of the investments refered to standard warehouse, cross dock solutions, light industrial and land acquisitions.
Carlo Walder, head of Industrial & Logistics at Savills said: ‘The market continues to show resilient characteristics: the volume of investments, leased space and new developments have reached unprecedented levels. Italy remains an attractive destination, offering higher prime yields than other countries and continually increasing rents.’
There is growing interest in secondary and emerging locations, with a strong expansion of developments, mainly speculative in nature.
Foreign capital was responsible for 97% of the investments, mainly coming from institutional players.
Transactions below €50 mln were the most frequent (28 out of 38) and involved 40% of total volumes, while five large transactions (> €100 mln) accounted for 42% of the six-month investments.
Net "prime" yields are still at their lowest value (3.90%), but could decompress in the coming months, while prime rents increased in all the key markets and will continue to grow.
Rental take-up surpassed 1.5 million m2 (+13% year-on-year) setting a new record for a first half, and registering 88 letting operations, with the most active sectors being retailers, e-commerce, couriers, pharmaceuticals and grocery.
By the end of 2023, more than 1.7 million m2 of new developments will be added to the market, corresponding to 39 projects, of which 38% in Lombardy, followed by Emilia-Romagna, Piedmont, Lazio and Veneto.
The majority (72%) are of speculative nature, while 32% of spaces under construction has been already let.
