Prologis Simplifies Lease Contracts
Streamlined Lease Features Fixed Additional Costs to Cover all Standard Operating and Administrative Charges
Prologis, Inc., the global leader in logistics real estate, is launching a new standard contract with a fixed service charge in Germany – the Clear LeaseTM. Prologis first used the new lease contract model for two contracts with Western Post (DE) GmbH in Bochum.
The advantages of Clear LeaseTM: In addition to the lease provisions, the contracts include a fixed service charge for the entire term of lease. The fixed charges cover all standard operating, maintenance and repair costs defined in the contract as well as administrative fees. Only property taxes and utility consumption will be invoiced separately as advised or based on consumption. Clear Lease already complies with the new accounting standards that will come into effect in January 2019.
“With Clear LeaseTM, we offer improved planning and cost certainty throughout the entire term of contract,” said Volker Schönfeld, director, leasing officer, Prologis Germany. “From now on, contract negotiations will be much faster. Our customers greatly benefit from this simplification, since we guarantee cost certainty over the entire lease period and avoid unplanned costs from subsequent service charge reconciliations.”
First Clear LeaseTM Contracts Signed in Germany
After its introduction in the USA, Prologis now also offers Clear LeaseTM contracts in Europe, initially in Germany, Spain and Slovakia. Customers in Germany with both new and extended lease contracts will benefit. In Bochum, Western Post (DE) GmbH signed a lease contract for 11,300 square meters from July 2018 and further 9,000 square meters as of October 2019.
The new type of lease contract covers all main property management services offered by Prologis. These include landscape maintenance, snow and ice removal, maintenance, repair and restoration. “In order to ensure the highest quality for our customers, our own property management team regularly compares the prices and services of our contractors,” explained Sven Böhnke, director property management Germany at Prologis. “With Clear LeaseTM, we now offer a service that further simplifies collaboration between customer and landlord.”