A coffee with… Carlos Cuevas, Executive Director at Blue Hunter

LIB: You have extensive experience in the logistics and industrial property sector. Based on your experience, how would you describe the current state of the market, and what are the main opportunities you see for the coming years?

Carlos: The logistics and industrial market in Spain has entered a phase of greater maturity and selectivity. Following the valuation adjustments of recent years, we have returned to an environment where institutional capital makes discerning choices: the quality of the asset, the strength of the tenant and the location take precedence over volume. Far from being a hindrance, this discipline generates some very interesting opportunities. In fact, the European market has entered a clear phase of stabilisation: according to data from Savills and CBRE, aggregate investment in logistics and industrial property across the main European markets exceeded 30,000 million euros in 2025, with prime yields stabilising at around 5.1 per cent and early signs of yield compression in selected markets as investor confidence returns.

The Spanish case is particularly illustrative. In the first quarter of 2026, take-up grew strongly year-on-year, demand remains very solid, driven by 3PL operators and the retail/e-commerce sector, and prime yields have stabilised at around 4.9 per cent, below the European average. It is a market that benefits structurally from trends towards nearshoring and supply chain diversification.

At Blue Hunter, we have identified several clear areas of focus. Sale and leaseback remains a natural source of liquidity for industrial operators seeking to monetise their property portfolio without relinquishing operational control. Forward purchase and forward funding are regaining momentum as construction and financing costs stabilise. And previously overlooked asset classes — industrial service organisations (IOS), industrial estates and cold storage — are now emerging as investable assets with genuine demand.

Last-mile logistics and well-located core assets will remain in high demand – in fact, according to Savills, around 68 per cent of investors are directing their capital towards last-mile assets, the segment most directly linked to online demand – but the real value lies in sourcing off-market transactions, where our specialisation and local knowledge make all the difference. Investors seek certainty of execution, and that is where a specialised boutique firm adds more value than ever before.

LIB: Demand for logistics assets continues to evolve, driven by the growth of e-commerce, automation and changes in supply chains. What characteristics are investors and operators looking for in a logistics platform today?

Carlos: What is considered a quality asset has changed profoundly. It is no longer enough to have a large, well-connected warehouse; investors now demand a set of attributes that were once merely desirable but are now essential prerequisites. The ‘flight to quality’ phenomenon is now a decisive factor: as automation and ESG standards gain prominence, demand is concentrated on prime assets, widening the performance and rental gap between prime and secondary warehouses.

In terms of physical layout, flexibility and adaptability are key considerations: generous clear heights, appropriate dock ratios, floor strength suitable for automation and racking density, and, above all, sufficient electrical power and the capacity to expand it. Energy has become a decisive factor: the possibility of installing solar panels and charging points is no longer a bonus, but a requirement. As for sustainability, BREEAM or LEED certifications are practically mandatory for institutional investors. This is no coincidence: fulfilling online orders increasingly demands modern, automation-ready and sustainable warehouses, which is driving occupiers to move away from older stock and migrate to higher-quality facilities.

However, the most significant factor remains the quality of the income: the tenant’s creditworthiness, the length of the lease, rent adjustment mechanisms and guarantees. A mediocre property with an excellent tenant and a long-term lease may be more attractive than a prime property with operational uncertainty. The importance of the lease also has a long-term perspective: according to data from Savills, a significant proportion of current leases in Europe are 10–15 per cent below current market rents, creating a clear opportunity for rent reversion that will boost income as leases expire, are renewed or are re-let at higher levels. At Blue Hunter, we devote a large part of our analysis precisely to structuring and verifying this contractual soundness.

LIB: Energy, land availability, sustainability and speed of implementation are some of the factors that influence the development of new projects. What would you say are the main challenges today when it comes to promoting logistics and industrial assets in Spain?

Carlos: The main bottleneck is twofold: land and energy. Well-located, purpose-built land is in short supply, particularly in the established logistics corridors of Madrid, Catalonia and Valencia, and its price puts pressure on the profitability of the development. Added to this is a slow and inconsistent planning process across regions and local authorities, which creates uncertainty regarding timelines that is difficult to convey to an investor who demands certainty. This is not a problem exclusive to Spain: across Europe, property development activity has become more selective and, according to CBRE, new logistics development is at a nine-year low, with barely 3.8 per cent of stock under construction – a pace that fails to keep up with demand.

Energy is the second major obstacle. Securing sufficient electricity supply, and the timeframes for connecting to the grid, now determine the viability of projects that did not even face this problem five years ago. It is a factor that can delay or even scupper a development. Added to this are construction costs that remain high compared with the previous cycle and financing costs which, although falling, still require discipline in structuring deals.

It is precisely this shortage of land and this constrained supply that underpin the fundamentals: in Spain, prime rents continue to rise — at around €7.25/m²/month in Madrid and €9.25/m²/month in Barcelona — reflecting tight supply conditions, and robust take-up is expected to push vacancy rates even lower. Ultimately, the challenge lies in execution: aligning land, planning permission, energy, construction and capital within a coherent timeframe. This is where specialist advice delivers real value, by anticipating risks, structuring the transaction in a way that makes it financeable, and helping developers and investors navigate an ever-increasing level of complexity.

LIB: Innovation is transforming the way this type of building is designed and developed. What trends do you think will shape the future of logistics and industrial construction in the coming years?

Carlos: I see several trends that are set to redefine how these buildings are conceived. The first is automation: warehouses are increasingly being designed around the systems that will operate them — ultra-precise floor slabs, greater heights, and electrical and data density that turn the building almost into a technological infrastructure. This has direct implications for the valuation and reversibility of the asset. E-commerce itself reinforces this logic: according to market estimates, an online sale requires approximately three times more logistics space than an in-store sale, due to the need for localised stock, pick-and-pack facilities, rapid delivery and returns management.

The second is genuine sustainability, going beyond certification: photovoltaic self-consumption, geothermal energy, smart water management and materials with a lower environmental footprint, driven by the European regulatory framework and ESG pressure from capital. The third is the intensification of land use: given the scarcity of land, we will see more multi-storey warehouses and higher-density developments, a trend common in Asian markets that is beginning to reach the most strained urban locations — not surprisingly, according to CBRE data, demand is growing 15 per cent faster in last-mile locations adjacent to the city than in the suburbs.

And a fourth, cross-cutting trend: the consolidation of new asset classes — cold storage, IOS, campas, dark stores — as fully investable products with their own valuation logic. All of this is underpinned by a fundamental structural driver: according to Ecommerce Europe’s European E-commerce Report, e-commerce continues to grow – a 7 per cent increase in European B2C turnover by 2025, extending a decade of uninterrupted expansion – and, according to estimates, Europe would need around 150,000 million euros’ worth of new logistics space just to meet current online consumption, before any further growth. The building of the future will be more flexible, more efficient and more technologically advanced. Those who can anticipate these attributes in the design will better safeguard long-term value.

LIB: Collaboration between developers, investors, engineering firms, construction companies and end users is becoming increasingly important. What role do forums for discussion and the exchange of knowledge play in driving the sector’s growth?

Carlos: They are absolutely fundamental, and I believe they are often underestimated. The logistics and industrial sector is a chain in which no link operates in isolation: the developer needs the investor, the investor needs the engineering firm and the construction company, and all of them need the end user, who is ultimately the one who gives meaning to the asset. When that dialogue takes place in a fragmented manner, opportunities are missed and mistakes multiply.

Specialised networking events enable these stakeholders to speak the same language and align their expectations before sitting down to negotiate. A developer who understands what investors are looking for today can design better projects; an investor who is aware of the actual land and energy constraints can better gauge their returns; a user who anticipates automation trends can negotiate smarter contracts.

Furthermore, in a sector that is evolving so rapidly, keeping knowledge up to date is a competitive advantage. In a market where prime rents are forecast to grow by between 2 per cent and 3 per cent annually until 2030 — driven by demand from e-commerce and a limited development pipeline — those who best interpret these signals will make better decisions regarding deal origination and structuring. The best deals we originate at Blue Hunter usually stem from relationships of trust built up over time, often at forums such as this. Sharing knowledge does not weaken anyone’s position; on the contrary, it raises the standard of the entire market and creates the conditions for better projects to emerge.

LIB: Blue Hunter Capital is once again supporting a new edition of Logistic & Industrial Build and, for another year, is part of the Committee that helps to define the event’s strategy and content. In your experience, what value does a specialised forum such as LIB bring to the sector, and what role do you think this type of initiative plays in the evolution of logistics and industrial construction?

Carlos: For Blue Hunter, supporting LIB and participating on its Committee is a decision that is consistent with our understanding of the sector. We are a specialist boutique firm precisely because we believe that value lies in in-depth knowledge and long-term relationships, and LIB embodies both these principles in the field of logistics and industrial construction.

What sets LIB apart is that it brings together the entire supply chain — developers, investors, engineering firms, construction companies and end-users — around rigorous, specialised content, rather than generic material. In a market as technical as ours, that specialisation makes the difference between a superficial conversation and one that actually drives deals and projects forward. Being part of the Committee allows us to help ensure that this content reflects the issues that truly shape the market: energy, land, automation, sustainability and financial structuring.

Initiatives such as LIB raise the standard across the entire sector: they professionalise the dialogue, accelerate the dissemination of best practice and help Spain consolidate its position as a leading logistics market in Europe. That is why we are renewing our commitment for yet another year.