But the report says the industrial sector is still attracting investor interest. Tenant demand from the transport, distribution and logistics sector remains strong and there is a shortage of land in the major markets. According to John Thompson, Investment Partner at King Sturge in Madrid, investors are switching to the industrial sector in search of better returns.
However, a shortage of institutional-grade stock means buyers are having to consider development opportunities or widen their location criteria to take in provincial locations outside Madrid and Barcelona.
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