We’re pleased to share our first quarter 2021 activity for Prologis Europe. This summary includes operating performance highlights and insights into select milestones and achievements.
Operating Performance – First Quarter 2021:
- Total portfolio: 18.7 million square meters*
- First quarter total leasing activity: 935.719 square meters:
- 187.954 square metres of new leases
- 747.765 square metres of lease renewals
- Rent change: +10.8%
*includes operating, development, held for sale, other and VAA/VAC
- 29 354 square metres at Prologis Eskilstuna DC1, Eskilstuna Sweden
- 19.523 square metres at Prologis Park Neustadt DC1, Nuremberg, Germany
- 11.297 square metres at Prologis Park Bologna Interporto DC5, Italy
- 12 312 square metres at Prologis Jordbro DC1, Stockholm, Sweden
Capital Deployment – First Quarter 2021
100% build-to-suit development starts:
- 100% of our total development activity (101.389 square meters) in the first quarter was build-to-suit.
BTS developments by geography:
- 31.385 square metres, Cologne Niehl DC2 Expansion, Germany
- 48.133 square metres, Poznan III DC2, Poland
- 9.966 square metres, Prague Chrastany DC1A, Czech Republic
- 11.905 square metres, Wroclaw V DC1 Expansion, Poland
- In the first quarter, Prologis Europe acquired four buildings with a total net rentable area of 44.371 sqm in Belgium, France, the Netherlands and the United Kingdom, as well as two land parcels with a total area of 112.503 sqm in the United Kingdom.
Note from Gunnar Gillholm, VP and country manager, Prologis Nordics:
“With an occupancy rate of 99.8 percent, over 60,000 square meters under development and a total of over 40,000 square meters in new and renewed leases during the first quarter, Prologis Nordics has had a solid start to 2021. With the opening of our new office in the important Stockholm region, we have established a presence that brings us closer to our customers and a platform to expand our presence in the region. Our long-term strategy is to establish ourselves in attractive logistics areas where our customers want to be, and at the same time are sustainable over time. A sustainability that must also be reflected in the properties we develop as we work together with our customers. ”
Special note from Ben Bannatyne, president, Prologis Europe:
”Operating performance in the first quarter of 2021 was strong. We’ve seen demand for tailored and sustainable logistics space increase as sentiment continues to improve and customers look for specific solutions to secure their supply chain needs for the future. Our total leasing activity for Prologis Europe rose by 17,4% compared to the same period last year, with new leases up by 34,8% year on year.
Structural trends have accelerated as a result of the pandemic, strengthening them while also changing the logistics real estate landscape for good. We are well-positioned and more than ever committed to helping our customers stay ahead of what’s next. We have continued to deliver build-to-suit solutions, warehouse services through our Prologis Essentials Marketplace platform and value beyond our real estate as we move deeper into our core markets and, in turn, closer to end consumers. Location matters more than ever. Together with a greater need for prime logistics space, primarily driven by the growth of e-commerce, these factors have translated into positive rent change.
Sustainability is at the heart of all we do. Our environmental stewardship, social responsibility and governance (ESG) goals reflect our commitment to create value across our core business. Further, ESG serves as a competitive differentiator that both maximizes return to our stakeholders and minimizes environmental impacts. We have science-based targets (SBT) for reducing greenhouse gas (GHG) emissions, a clear carbon reduction strategy which includes emissions offset programmes and rainforest protection, and we always build to the highest sustainable and certifiable standards possible. Through an established culture of innovation, our European team is raising standards in areas such as renewable energy, sustainable building design, green investment and labour as we work side by side with our customers to help them achieve their own ESG targets.”