Prologis has announced the performance of its operations in Europe for the third quarter of 2022. This summary includes highlights of operational performance and insights into selected milestones and achievements.
Quote from Ben Bannatyne, President, Prologis Europe:
“We saw a solid third quarter in our European business. Occupancy remained high, driven by demand and the quality of our portfolio and customer service. In this evolving macroeconomic environment, we are more focused than ever on anticipating our customers’ needs, especially around energy, labour and sustainability.”
Operating Performance – Third Quarter 2022:
- Total portfolio: 22.2 million square metres.*
Total leasing activity: 2,810,211 square metres:
- 688,934 square metres of new leases.
- 2,121,277 square metres of lease renewals.
- Rent change: + 14.3%**
*includes operating, development, held for sale, other and VAA/VAC
** based on lease start date
Leasing Highlights:
27,955 square metres for Transeco, at Prologis Park Orleans, France.
- 20,494 square metres for Stark Future S.L., at Prologis Sant Boi, France.
- 18,617 square metres for Lidl, at Prologis Budapest-Sziget, Hungary.
- 14,445 square metres for CEVA Logistics, at Prologis Born, Netherlands.
Capital Deployment – Third Quarter 2022
Q3 Development Starts:
There have been 12 new starts in the third quarter, comprising a total net rentable area of 296,658 square metres in the Czech Republic, France, German, Italy, Poland, Slovakia, Spain and the United Kingdom. There were four notable build-to-suits covering 52,604 square meters and eight speculative developments totalling 244,054 square meters in direct response to growing customer demand.
Q3 Acquisitions:
This quarter, Prologis Europe acquired 144 buildings with a total net rentable area of 1,155,158 square metres in gateway markets in Belgium, France, Germany, Italy, the Netherlands, Poland, Spain and the United Kingdom as well as two land parcels with a combined total area of 198,987 square metres in France and Slovakia.
Part of the acquisitions also included two facilities in Germany. "With the urban spaces in Nuremberg and Berlin, we enable our customers to be closer to the end consumer and continue to drive our growth in the German market," said Björn Thiemann, senior vice president, country manager, Prologis Germany. "The space in Berlin is a particularly welcome addition to our portfolio, as we have only recently entered the Berlin logistics market and are expanding our presence there."
Additional insight from Ben Bannatyne, president, Prologis Europe:
While the fundamentals of our business are very strong, we are closely monitoring our customers’ needs and the overall environment. The ongoing war and growing energy challenges in Europe remain top of mind. We run our company to thrive over a variety of economic cycles, which puts us in an even better position to support our customers.
We continue to set our business and portfolio apart from the competition by listening to our customers and finding innovative ways to support their growth and success. Take our energy offerings. We’re making capital investments and bringing on experienced new leaders to help our customers on their path to generating a lower-carbon footprint.
As an industry leader in renewable energy, we have set ambitious goals for increased solar generation, are investing in EV infrastructure and have committed to reaching net zero by 2040 across our value chain. We believe the private sector can meaningfully impact the resilience and efficiency of the global supply chain.