When business is good, companies rely on additional logistics space that fits specific requirements and is available quickly. The demand is especially high in the constantly growing e-commerce sector. Prologis is well prepared to meet this demand.

The months-long construction of a build-to-suit development does not work for some customers because logistics facilities are often required on short notice. In order to meet this strong demand, Prologis develops speculative logistics facilities. “Our logistics park in Hamm, Germany, shows that this strategy is taking off: The speculatively developed distribution center of 35,000 square meters was fully leased before it was even completed in September 2017,” says Philipp Feige, vice president, market officer Germany, Prologis. “In Germany, we are speculatively developing two other facilities at the moment to maintain our ability to provide customers with quality logistics space in coveted locations.”

A logistics facility around 26,000 square meters is being built in Pulheim, Germany, northwest of Cologne. Prologis plans to complete the distribution center in the third quarter of 2019. The central location, optimal access to delivery areas and availability of a qualified workforce make Pulheim the ideal for numerous sectors. The facility is a brownfield development, where Prologis is revitalizing land that was previously used for industrial purposes—a sustainable solution to address scarcity of space.

Prologis is developing another 24,700 square meter logistics facility in the Hanover region with completion scheduled for summer 2019. The site is located in an industrial zone designated for logistics in the Prologis Park Hanover-Langenhagen, where it is possible to operate 24 hours a day, seven days a week, which is ideal for logistics service providers, industrial companies, retailers and e-commerce companies.

When developing logistics facilities speculatively, Prologis focuses on flexibility to adapt the space to meet the requirements of future customers and potential subsequent customers. Additionally, the in-house research team at Prologis monitors the markets closely, never losing sight of what locations are suitable for which sectors and what factors will shape the supply chain of the future – Prologis regularly releases an analysis of the most desirable logistics hotspots in Europe. “Aside from analyzing the land and its infrastructure, our team also sheds light on the potential of the entire site,” explains Feige. “As a long-term proprietor, this enables us to create a sustainable strategy and develop logistics real estate strategically that meets current and future customer requirements.” Sustainability is a key element in all logistics facilities of Prologis—at the very least, we develop each building based on the gold-standard guidelines from the German Sustainable Building Council (DGNB). Naturally, Prologis takes care of property management for speculative developments, as well.

Grundsteinlegung Pulheim

The ground breaking ceremony for the speculative logistics facility in Pulheim: (from left) Stefan Olesch (director project management, Prologis), Alexander Heubes (SVP, country manager Germany, Prologis), Frank Keppeler (mayor, City of Pulheim), Martin Höschen (technical alderman, City of Pulheim), Markus Scheja (VP project management, Prologis)


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