We’re pleased to share our fourth quarter and full year 2020 European activity. Below is a summary of operating performance, year-end highlights and insights into select milestones and achievements.
“The continual wellbeing of our employees has been our top focus in 2020 while also rolling out as-a-service innovations for our customers - priorities we will continue to expand upon.”
Ben Bannatyne
President, Prologis Europe
Operating Performance - Fourth Quarter and Full Year 2020:
- Total portfolio: 18.7 million square meters*
- Fourth quarter total leasing activity: 730,500 square meters:
- 289,500 square metres of new leases
- 441,000 square metres of lease renewals
- Full year occupancy: 96.7%
- Full year 2020 leasing activity was 3.36 million square meters, an 11.1% increase compared to the previous year and representing a 12.8% rent change:
- 903,000 square meters of new leases
- 2,46 million square metres of lease renewals
*includes operating, development, held for sale, other and VAA/VAC
Capital Deployment – Fourth Quarter and Full Year 2020:
Development starts:
- Total development activity in the fourth quarter was 202,000 square meters, of which 39% was build-to-suit.
- Full year 2020 saw 21 development starts totalling 520,000 square meters, of which 73.1% was build-to-suit.
Acquisitions & dispositions:
- In the fourth quarter, Prologis Europe acquired five buildings with a total net rentable area of 85,500 square meters and four land parcels with a total land area of 103,500 square meters. The company disposed of 31 buildings totalling 608,500 square meters and two land parcels sales comprising 131,000 square meters.
- As part of our core market focus, over the full year, Prologis acquired 25 buildings with a total net rentable area of 410,500 square meters and 14 land plots totaling 1,02 million square meters. The company also disposed of 34 buildings with a combined total of 703,500 square meters and four land parcels totaling 900 hectares. These dispositions in part represent the largest sale of logistics real estate assets on record in the UK.
Customer Focus
We continuously strive for solutions that uniquely address our customers’ needs. Our long-term partnership approach to solving pain points has led to an unsurpassed level of service and flexibility. Especially in these challenging times, innovations such as the Prologis Essentials Marketplace and PARKLife are helping to create healthier environments where our customers’ businesses can thrive.
COVID-19
Our key focus continues to be the well-being of our employees and customers. Throughout 2020, we delivered a steady cadence of market insight and research related to the effects of the pandemic on logistics real estate and the supply chain. Tailored innovations and park safety measures meant that buildings could safely remain open in compliance with government regulations, which limited operational impacts for our customers. Prologis’ employee assistance is ongoing as our global workforce continues to adapt. Free stimulus programmes cover broad-ranging support, from help with creating remote workstations to mental and physical fitness, health and well-being, and coaching and counselling.
Sustainable Development and Innovations
Prologis has demonstrated a decades-long commitment to environmental stewardship, social responsibility and governance (ESG). We implement innovations from our Prologis Labs directly into our buildings, raise environmental standards, ensure protection of site biodiversity and develop parks with lasting community benefits. Working with climate change charity Cool Earth and sustainability certification company The Planet Mark, we also mitigate whole-life carbon emissions in all new developments across Europe.
Additional 2020 Highlights:
- Research: COVID-19 special report series
- Research: Automation and Logistics Real Estate – part one, part two
- Launch of Prologis Essentials Marketplace
- WELL-gold certification for Prologis Park Datteln, Germany
- Prologis Park Waalwijk DC3, the Netherlands: First Circular Distribution Center
- Partnership with Cool Earth: mitigating whole-life carbon emissions in all new developments
- Fourth quarter and full year 2020 global press release