We’re pleased to share our third quarter 2022 activity for Prologis Europe. This summary includes operating performance highlights and insights into select 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, Germany.
Capital Deployment – Third Quarter 2022
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.
Acquisitions Europe:
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, France, 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.
Acquisitions Benelux:
Prologis Benelux acquired 31 buildings in Q3 with a total net rentable area of 299,305 square meters in both city hubs and logistics hotspots in amongst others Amsterdam, The Hague, Rotterdam, Eindhoven, Breda, Tilburg, Brussels, Ghent, and Liège. Additionally, Prologis Benelux acquired the following important city locations:
- 300,000 square meters in Amsterdam, Rotterdam and Brussels via the Crossbay acquisition.
- 16,000 square meters in Zaventem, Brussels.
- 9,900 square meters in Utrecht.
Sander Breugelmans, SVP Regional Head Northern Europe:
“Q3 was a good quarter for our Benelux activities. Specifically acquisitions in city hubs had our focus because of a rising demand for city distribution and sustainable last mile delivery. This way, we can better server our customers and support them in their growth ambitions.”
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 find 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.
Additional Resources/Insights:
- Research: Strong Demand Sends True Months of Supply to New Low
- Research: 2021 Prologis Logistics Rent Index
- 2021-2022 Prologis ESG Sustainability Report
- Prologis is the #1 real estate investment trust (REIT) on the 2022 Global 100 Most Sustainable Corporations in the World list.
- Press release: Prologis expands urban infill portfolio in seven European countries following acquisition of Crossbay’s initial assets
- Press release: Q3 Global Earnings, 2022
- Event: Prologis Groundbeakers 2022