Spain’s industrial real estate market may find a new growth niche in the defence sector, according to Canadian real estate consultancy Colliers in its Defence Deployment report. The key argument underpinning this thesis is the transformation of Europe’s defence sector towards a more technological and innovative model which, it explains, will open up an opportunity for the real estate sector.

The shift envisaged by the consultancy will be driven by the increase in defence spending announced by the European Commission last April as part of the ReArm Europe Plan / Readiness 2030. This project will mobilise an additional €800 billion in spending for the sector, with part of the funding earmarked for new production facilities.

Specialised technology clusters
In its report, Colliers forecasts that this new strategic defence framework will drive a shift in activity away from large industrial plants towards specialised technology clusters. After an initial group of countries in the top tier of this sector (the United Kingdom, France, Germany and Turkey), Spain forms part of a second tier of highly specialised and technologically advanced nations alongside Sweden, Italy, Poland and Norway.

Two main clusters stand out in Spain, each with distinct strengths. Firstly, Madrid, which serves as a nerve centre and is home to the headquarters of major defence companies and system integrators. The Seville-Cádiz area, meanwhile, a stands out as a key industrial hub focused on the aerospace sector and naval systems.

Hybrid facilities
The market evolution identified by the consultancy is driving growing demand for hybrid facilities that integrate laboratories, engineering offices and light industrial spaces. New tenants operating in the defence technology (defence tech) sector prioritise operational flexibility, security and proximity to well-established talent ecosystems.

These tenants also have more demanding technical requirements for the spaces they wish to occupy. Among other things, they primarily require buildings with perimeter access control, a robust and guaranteed power supply, advanced logistics capabilities and strict compliance with security regulations. In this regard, the report concludes that the specialisation of Spain’s clusters is enhancing the country’s appeal for investment and the development of complex real estate projects.

Colliers’ national director of industrial and logistics, Oriol Gual, stated that, “The wave of defence investment will drive demand for industrial assets in Spain, especially in manufacturing and the supply chain, with technology spaces playing an increasingly important role. This demand will be concentrated in clusters such as the Henares Corridor (Madrid) and Andalusia (Seville-Cádiz), where access to energy will be decisive, as will the availability of space for R&D and the development of new technologies. As a result, the market will evolve towards more specialised properties that combine industrial use with technological and innovation capabilities in environments with well-established experience in the defence industry.”

Photo: Colliers