Industrial estates in Valencia are increasingly attractive to large companies

by Lorraine Williamson
industrial estates in Valencia

Due to the booming e-commerce and ever-expanding distribution centres, companies are showing a growing interest in large industrial platforms in the centrally located Valencia region. From here they can easily serve the Mediterranean area and export abroad. 

Real estate companies have seen the demand for large industrial plots increase significantly in the past 18 months. This mainly concerns areas of at between 20,000 – 100,000 square metres. Currently the greatest demand comes from logistics companies. However, producers are also showing increasing interest. 

In January last year, the German supermarket chain Lidl invested a further €55million in a distribution centre in the municipality of Cheste. And as such, the multinational doubled the logistics capacity and planned expansion in the Mediterranean area of ​​the Valencia region. 

The most popular areas of interest among the large companies are the industrial plots in Cheste, Ribarroja and Paterna. The land in the heart of the Valencia region is the most expensive its location near the port. Per square metre you have to pay between €150 and €270 per year here. 

Casa Las Dunas Spain

Geostrategic location for distribution 

With the current growth of logistics platforms, Valencia has become an attractive yet relatively cheap alternative to the more expensive cities of Barcelona and Madrid. The priority previously assigned to the city is now of a geostrategic nature, making the proximity of the port important. For example, the American e-commerce giant Amazon recently announced it will open a large distribution centre in the Valencian municipality of Onda. Like Amazon, many food and DIY companies are also interested in large logistics platforms of 40-50,000 square metres for exports. 

Another important element that large companies are showing in the region of Valencia is the availability of sufficient new workers. They want to ensure there is enough demand for work to keep the distribution centre running. That is another reason why they choose a location within a radius of 40 kilometers from the city of Valencia. Otherwise, the employees’ commuting distance would otherwise be too great. 

Modernisation of industrial estates in Valencia

According to Javier Muñoz of real estate company CBRE Spain, the industrial estates of the Valencia region are still insufficiently suited to the demand for such large areas. The industrial sites date from years ago, when there was hardly any demand for large-scale projects. Only 20% of all available industrial sites still meet modern standards. So there is a task for the owners to adapt their industrial installations to the changing current market. 

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