Spain’s Real Estate Shift: Why ‘Tertiary’ Assets Are the Latest Investment Hotspot
Spain’s real estate market is undergoing a significant transformation, with a growing focus on “tertiary” assets – a category encompassing hotels, offices, logistics centers, retail spaces, and industrial properties. This shift signals a new cycle of investment opportunities, moving beyond traditional residential development.
Aliseda Leads the Charge with €2.4 Billion in Off-Market Deals
Aliseda, a key player in the Spanish real estate sector, has been at the forefront of this trend, capturing €2.4 billion in off-market real estate opportunities over the past nine months. A substantial €460 million of this total is allocated to tertiary assets, demonstrating a clear strategic focus. The company’s CEO, Eduard Mendiluce, emphasizes Aliseda’s ability to not only manage these assets but also to proactively generate opportunities within the commercial real estate landscape.
Beyond Madrid and Barcelona: Opportunities in Secondary Markets
A key aspect of this emerging trend is the increasing interest in locations outside of Spain’s major metropolitan areas. Aliseda highlights the potential of secondary markets, where opportunities for value creation are often more significant. This geographical diversification is attracting investors seeking higher returns and less competition.
The Rise of Commercial Real Estate (CRE) and Asset Management
The focus is shifting towards a more proactive approach to asset management. Rather than simply buying and selling properties, investors are looking to add value through strategic improvements and repositioning. Aliseda currently holds a portfolio of tertiary assets valued at over €1.5 billion, and continues to actively seek new opportunities.
Energy Efficiency: A Hidden Opportunity
A significant opportunity lies in upgrading existing properties to meet modern energy efficiency standards. Mendiluce points out that approximately 75% of Spain’s commercial real estate currently falls short of these requirements, creating a substantial market for rehabilitation and energy-saving improvements.
Sector-Specific Investment Strategies
Experts are identifying specific areas within the tertiary asset class that offer particularly strong potential:
Offices in Secondary Cities
Ismael Clemente, CEO of Merlin Properties, sees opportunities in developing premium office spaces in historically secondary cities like Bilbao and Valencia, catering to unmet demand.
Hotels: A Resilient Sector
Arcano Real Estate is actively financing hotel projects, with Eduardo Fernández-Cuesta noting the sector’s strong performance in recent years, particularly in both urban and vacation destinations. Selective investment remains crucial.
Logistics: Focus on Accessibility
Óscar Duclert, CEO of Iroko Iberia, emphasizes the importance of access to labor, infrastructure, and the ability to increase rental income when investing in logistics properties in secondary markets.
Data Centers: Navigating Challenges
While data centers represent a growing market, Clemente acknowledges the challenges posed by social opposition and legislative restrictions. He suggests focusing on projects that prioritize energy self-sufficiency and renewable energy sources.
Retail: Strategic Investment
Investment in retail centers has increased by 25% in the last year, but Fernández-Cuesta advises against investing in properties requiring significant reconversion.
The Importance of Public and Private Investment
Íñigo Fernández de Mesa, VP of CEOE and President of Rothschild & Co Spain, stresses the critical role of both public and private investment in driving economic growth in Spain. He highlights the demand for increased infrastructure spending and addressing housing affordability challenges.
Suelo (Land): A Fundamental Asset
Luis Alonso, Director of Suelo at Aliseda, emphasizes the fundamental importance of land in addressing Spain’s housing needs. As the leading land commercializer in Spain, with a portfolio of €2 billion, Aliseda is actively involved in providing solutions to the current housing shortage.
FAQ
What are ‘tertiary’ assets? Tertiary assets include commercial properties like hotels, offices, retail spaces, logistics centers, and industrial buildings.
Why is there a shift towards tertiary assets? Investors are seeking diversification and opportunities for higher returns, particularly in locations outside of major cities.
What is Aliseda’s role in this trend? Aliseda is a leading investor and asset manager, actively acquiring and managing tertiary assets across Spain.
What is the importance of energy efficiency? A significant portion of Spain’s commercial real estate is not energy efficient, creating opportunities for upgrades and increased property value.
Are there risks associated with investing in tertiary assets? Like any investment, there are risks. Experts advise being selective, focusing on locations with strong fundamentals and potential for growth.
Did you realize? Aliseda has a commercial network of 115 professionals dedicated to managing and marketing assets throughout Spain.
Pro Tip: Consider secondary markets for potential investment opportunities, as they often offer higher returns and less competition.
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