We’re pleased to share this recap of Prologis Europe’s second quarter 2022 activity. This summary includes operating performance highlights and insights into select milestones and achievements.
Ben Bannatyne, President, Prologis Europe:
“We continue to see high demand for premium, sustainable and versatile logistics space in our highly constrained markets. We pride ourselves on staying ahead of our customers’ needs and delivering value beyond our real estate through our scale and procurement capabilities, such as our Essentials platform. In Q2, we were proud to announce an ambitious new goal to reach net zero across our value chain by 2040 and will continue to report on our real and measurable progress.”
Operating Performance – Second Quarter 2022:
- Total portfolio: 20.7 million square meters*
- First quarter total leasing activity: 981,269 square meters:
- 196,692 square meters of new leases.
- 784,577 square meters of lease renewals.
- Rent change: +18,6%**
* includes operating, development, held for sale, other and VAA/VAC
** rent change is based on lease sign dates
Leasing Highlights:
- 27,944 square meters for Transeco at Prologis Park Orléans DC2, France.
- 20,494 square meters for Stark Future S.L. at Prologis Park Sant Boi DC1, Spain.
- 14,445 square meters for CEVA Logistics Netherlands B.V. at Prologis Park Born DC1, the Netherlands.
- 11,695 square meters for National Pen Czech s. r. o. at Prologis Park Pilsen-Stenovice DC2, Czech Republic.
Capital Deployment – Second Quarter 2022
New development starts:
Our reliable procurement network of global suppliers fostered 10 new development starts in the second quarter:
- Two build-to-suit developments totalling 61,050 square meters in Italy and Belgium.
- Eight speculative developments totalling 225,368 square meters in Belgium, Hungary, Italy, the Netherlands, Poland and the United Kingdom.
Acquisitions and dispositions:
Prologis Europe acquired 20 buildings with a net rentable area of 445,273 square meters in urban markets in France, Germany, Italy and the Netherlands.
The company acquired five land plots totalling 240,067 square meters along strategic logistics corridors in France, Germany, the United Kingdom and Sweden.
The company disposed of two buildings and one land parcel, comprising 67,066 square meters and 345,896 square meters, respectively.
Operating Performance Central Europe & Poland– Second Quarter 2022:
- CE total portfolio: 4,608,000 square meters*
- CE Q2 occupancy: 96.3 percent
- CE Q2 leasing activity was 443,800 square meters
- 90,000 square metres of new leases
- 188,500 square metres of lease renewals
- Poland total portfolio: 2,236,200 square meters*
- Poland Q2 occupancy: 96.8 percent
- Poland Q2 leasing activity was 190,100 square meters
- 41,800 square metres of new leases
- 104,800 square metres of lease renewals
*NRA – Net Rentable Area
Central Europe Capital Deployment - Second Quarter 2022
Development Starts:
- Total development activity in Q2 2022 was two speculative developments: DC2A at Prologis Park Budapest-Sziget II totaling 18,590 square meters, and DC4 at Prologis Park Wrocław III totaling 48,900 square meters.
- Second quarter 2022 saw two development completions totalling 36,300 square meters (Prologis Budapest Sziget II DC1A & Prologis Park Brno DC3).
Additional comments from Ben Bannatyne, President, Prologis Europe:
- Strong fundamentals and rising costs pushed rents up by 4.7 percent in the second quarter of 2022 -- the strongest quarterly growth on record. With demand at record highs, we continue to push deeper into the urban core, leveraging our proprietary data to bolster our built-for-the-future approach while securing space for our customers in prime locations such as Bleiswijk, Roosendaal and Amsterdam in the Netherlands and Berlin, Hannover and Duisberg in Germany.
- We continue to gain a stronger foothold in the rapidly expanding life sciences sector. Work has begun on the development of a new multi-let laboratory and office space at Cambridge Biomedical Campus, which is targeting a range of growing biotech and life sciences businesses.
- We continue to uplevel our ESG strategy through more robust energy efficiency, carbon neutrality and customer-centric programmes. You can learn more about our net zero by 2040 goal and other sustainability metrics in our recently released ESG report.
Additional Resources/Insights:
- Prologis Annual Report 2021
- Research: Strong Demand Sends True Months of Supply to New Low
- Research: 2021 Prologis Logistics Rent Index
- Prologis is the #1 real estate investment trust (REIT) on the 2022 Global 100 Most Sustainable Corporations in the World list.