Prologis Europe: First Quarter 2021 Activity
We’re pleased to share our first quarter 2021 activity for Prologis Europe. This summary includes operating performance highlights and insights into select milestones and achievements.
Operating Performance – First Quarter 2021:
- Total portfolio: 18.7 million square meters*
- First quarter total leasing activity: 935,719 square meters:
- 187,954 square metres of new leases
- 747,765 square metres of lease renewals
- Rent change: +10.8%
*includes operating, development, held for sale, other and VAA/VAC
- 19,523 square metres at Prologis Park Neustadt DC1, Nuremberg, Germany
- 11,297 square metres at Prologis Park Bologna Interporto DC5, Italy
- 11,020 square metres at Prologis Park La Granada DC1, Barcelona, Spain
- 10,284 square metres at Prologis Fokker Park DC3B, Amsterdam, the Netherlands
Capital Deployment – First Quarter 2021
100% build-to-suit development starts:
- 100% of our total development activity (101,389 square meters) in the first quarter was build-to-suit.
BTS developments by geography:
- 31,385 square metres, Cologne Niehl DC2 Expansion, Germany
- 48,133 square metres, Poznan III DC2, Poland
- 9,966 square metres, Prague Chrastany DC1A, Czech Republic
- 11,905 square metres, Wroclaw V DC1 Expansion, Poland
- In the first quarter, Prologis Europe acquired four buildings with a total net rentable area of 44,371 sqm in Belgium, France, the Netherlands and the United Kingdom, as well as two land parcels with a total area of 112.503 sqm in the United Kingdom.
Development in Germany
With a current occupancy rate of 99.5 percent, the start of a 31,385 square meter development and a total of 236,000 square meters of new leases and lease extensions, the Prologis Germany team can also look back on a successful first quarter of 2021. ”Demand for high-quality, sustainable logistics space remained strong in the first quarter”, said Björn Thiemann, senior vice president, country manager Germany at Prologis. ”We are particularly happy about the expansion of our logistics park in Cologne-Niehl by 31,385 square meters for our existing customer Euziel.” Prologis' strategy in Germany is focused on growth in urban locations, where the company is already active. In addition, logistics space and sites along routes connecting logistics hotspots are high on the list of priorities.
Special note from Ben Bannatyne, president, Prologis Europe:
”Operating performance in the first quarter of 2021 was strong. We’ve seen demand for tailored and sustainable logistics space increase as sentiment continues to improve and customers look for specific solutions to secure their supply chain needs for the future. Our total leasing activity for Prologis Europe rose by 17,4% compared to the same period last year, with new leases up by 34,8% year on year.
Structural trends have accelerated as a result of the pandemic, strengthening them while also changing the logistics real estate landscape for good. We are well-positioned and more than ever committed to helping our customers stay ahead of what’s next. We have continued to deliver build-to-suit solutions, warehouse services through our Prologis Essentials Marketplace platform and value beyond our real estate as we move deeper into our core markets and, in turn, closer to end consumers. Location matters more than ever. Together with a greater need for prime logistics space, primarily driven by the growth of e-commerce, these factors have translated into positive rent change.
Sustainability is at the heart of all we do. Our environmental stewardship, social responsibility and governance (ESG) goals reflect our commitment to create value across our core business. Further, ESG serves as a competitive differentiator that both maximizes return to our stakeholders and minimizes environmental impacts. We have science-based targets (SBT) for reducing greenhouse gas (GHG) emissions, a clear carbon reduction strategy which includes emissions offset programmes and rainforest protection, and we always build to the highest sustainable and certifiable standards possible. Through an established culture of innovation, our European team is raising standards in areas such as renewable energy, sustainable building design, green investment and labour as we work side by side with our customers to help them achieve their own ESG targets.”