LIB: Almost 20 years in the real estate sector, and more than 4 years as Managing Director and Partner of Panattoni. How has your career so far been and what do you love most about the sector?

Gustavo: I have been in the logistics real estate sector for 23 years and I think my career has exceeded all my initial expectations. It has allowed me to be happy to develop something that I like and am passionate about and to have taken part in great projects that will last over time. But what satisfies me most is having worked with great professionals from whom I have had the opportunity to learn and develop as a person and professionally, and I am not only talking about my superiors, but also about people who have been in my charge, as well as having learned a lot from some of my competitors and clients, with whom I have a cordial and friendly relationship for the most part.

I am proud to have been part of the transformation of the logistics real estate sector in Spain and Portugal and to have contributed to bringing it up to the level of the most developed countries in Europe in this sector, thanks to the responsibilities and trust that I have been given in the two large companies in which I have worked in this sector, such as Prologis and, for the last 4 years, Panattoni. What excites me most about this sector is not only the evolution it has undergone in the last 20 years, in which it has been professionalised and modernised like no other real estate sector, but also facing the challenges of the future, which are challenging in every way, as a result of the demands we must face with regard to digitalisation, sustainability, automation and mobility to meet the requirements of our customers and regulations.

LIB: Since 2020 you have had a presence in Spain and two years later you also entered the Portuguese market. What differences and similarities do you see between the two markets?

Gustavo: Since our entry into the Spanish market in 2020 and subsequent expansion into the Portuguese market two years later, we have identified both differences and similarities that influence our strategies and operations.

The Spanish market is characterised by its larger size and demand compared to the Portuguese market. Spain has a larger and more diversified economy and 4 times the population of Portugal, which translates into a higher volume of logistics and industrial needs. Cities such as Madrid and Barcelona are important logistics hubs, with a well-developed infrastructure and a sustained demand for industrial and logistics space, but there are also other important markets that have grown a lot in recent years, such as Zaragoza and Valencia, among others. In contrast, the Portuguese market is much smaller in size, although it has shown significant growth and increasing demand, especially in metropolitan areas.

Another notable difference is the maturity of the markets. Spain has a more consolidated industrial real estate market, with greater competition and a wide range of logistics services. Portugal is in a phase of opening up to new international players and is more open and receptive to foreign investment than it was 10 to 15 years ago.
In terms of similarities, both markets share a trend towards sustainability and energy efficiency, which aligns perfectly with our commitment to sustainability. In addition, in both Spain and Portugal, we have seen a growing appreciation by users of modern properties and recognition of the differences from those built years ago that do not have the quality, sustainability, storage capacity and energy efficiency features of those being developed today, and they are willing to pay for it.

LIB: What would you highlight about Panattoni compared to the competition? What is your differential value?

Gustavo: Our commitment to quality and sustainability is fundamental. We strive to implement best practice in sustainable construction under recognised standards such as BREEAM. This not only minimises our environmental impact, but also provides our clients with efficient, high performance facilities.

In addition, our global presence allows us to tap into a vast network of expertise and resources, adapting international best practices to local needs. This combination of global expertise and local knowledge, with multi-disciplinary teams at the local level, allows us to offer innovative and customised solutions to keep the focus on our customers.

We work closely with our customers to understand their needs and provide tailored solutions that optimise their logistics operations. This, coupled with our ability to manage projects from start to finish, from land acquisition to final delivery, ensures a smooth and efficient process.

And I would also highlight our financial strength and our investment capacity, which allow us to undertake large-scale projects, ensuring compliance with deadlines and budgets and without geographical limitations, being able to go hand in hand with the client anywhere they wish. And the best proof of the latter is that in the 4 years we have been in existence on the Iberian Peninsula, we have already developed properties or are in the process of doing so in 16 different provinces, something unique and perhaps unrepeatable by any other developer in our sector.

LIB: When selecting a floor, what requirements are essential from your point of view?

Gustavo:

When selecting a location for a project, we take into account several factors to ensure the success, satisfaction of our clients and the long-term sustainability of the project.

An important element is the strategic location. Proximity to major transport routes, such as motorways, ports and airports, and accessibility to logistics hubs and distribution centres. In addition, the site must have a configuration that facilitates design and construction, and the quality of the soil and topography is essential to determine the feasibility of the project and construction costs.

In line with our values and commitments, we consider the environmental impact of our warehouses. This includes assessing the environment, biodiversity and the possibility of implementing permanent measures in the warehouse such as renewable energy systems and efficient resource management.

It is also important to ensure that the site complies with local planning regulations. This includes checking the area, the possibility of obtaining the necessary permits and complying with legal and environmental requirements. And finally, the costs.

In short, for our projects we look for an optimal combination of location, size, available services, land conditions, regulatory compliance, sustainability and economic viability.

LIB: What percentage of your developments are turnkey, what percentage at risk and what typology do you see as most advantageous in the development of logistics warehouses?

Gustavo:

If we take into account completed warehouses, there are more at-risk projects than turnkey projects, but we are seeing a strong trend towards the latter. Both types of development have their own advantages and characteristics that make them suitable for different situations and needs in the logistics market, but I consider turnkey projects to be particularly advantageous.

Turnkey projects offer a fully customised solution tailored to the client’s specific needs, allowing us to work closely together from the outset, ensuring that all specifications and requirements are met. The main advantage of this modality is that the client receives a ready-to-operate facility, without having to worry about the details of the development and construction process. In addition, turnkey projects often offer greater efficiency in terms of time and cost, as the entire process is under our control, from design to final delivery.

Still, it is worth noting that developments at risk improve the real estate sector and its overall offer, but they require a lot of speed and attention to detail to meet the market’s shortcomings. These projects, carried out without a predefined end client, allow us to offer a product that we perceive to be in short supply when looking at the real estate sector. We also control from design to final delivery, but it involves knowing each market in detail and its peculiarities to create standard type warehouses that are flexible enough to adapt to the future tenant who is going to rent it.

LIB: We cannot end the interview without asking you about Logistic & Industrial Build, the new trade fair – unique for the logistics and industrial construction market – that we are launching in November 2024. Panattoni has already confirmed your participation as Gold Sponsor of the event. As a professional in the sector, what do you expect from this new event?

Gustavo: As a representative of Panattoni Iberia, I am very excited about our participation as a Gold Sponsor at Logistic & Industrial Build. I hope that this event will give us the opportunity to connect with key industry players, explore the latest innovations and trends, and strengthen our position as a market leader. Furthermore, I am confident that it will be an excellent platform to learn, exchange ideas and generate new business opportunities that will drive the growth and development of the logistics and industrial sector in Iberia.