New research by King Sturge reveals that at the beginning of 2001 the availability of logistics warehousing was practically non-existent and there is very little new development. King Sturge's Madrid market report shows that industrial rents have increased by 100% in the last three years and further rental growth is predicted.
John Thompson, investment partner for King Sturge in Madrid said: 'Occupiers, especially those looking for large units will have an on-going problem finding space.' And the shortage is boosting investment performance, with prime industrial investments in Madrid yielding about 8%. 'In the face of a continuing shortage of availability, the total return is likely to exceed 12% for several years to come. This is one of the best rates of return for any market in Europe,' said Thompson.
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