Prologis breaks ground on nearly 7 million-sq-ft of logistics space in second half of 2018
Project pipeline indicates continued strong demand for warehousing space heading into 2019
Prologis, a major builder and lessor of logistics real estate, has announced its build-to-suit projects for 2018, and with 6.9 million-sq-ft of project space started in the second half compared to 4.4 million-sq-ft completed it appears real-estate demand continues to remain strong globally.
The completed floorspace is in the form of the completion of 17 build-to-suit projects, with a total expected investment (TEI) of approximately $400 million on a Prologis share basis. The number brings Prologis' total to 35 build-to-suit completions for the full year, totaling 12.4 million square feet, with a TEI of approximately $1.0 billion on a Prologis share basis.
During the second half of the year Prologis started 15 build-to-suit projects comprising 6.9 million square feet with a TEI of approximately $525 million on a Prologis share basis. This brings the company's total to 29 build-to-suit starts for the full year, totaling 11.6 million square feet, with a TEI of approximately $975 million on a Prologis share basis. 80% of those starts were signed with the company's multi-site customers, and more than 95% are located in global markets.
Prologis' Second Half 2018 Build-to-Suit Completions
|
Customer |
Industry |
Market |
Size (SF) |
1 |
Solaris Paper |
Manufacturing (Regional) |
Moreno Valley, CA |
779,000 |
2 |
ZOZO, Inc. |
Apparel (International) |
Tokyo, Japan |
682,000 |
3 |
XPO Logistics, Inc. |
Logistics (International) |
Rotterdam, Netherlands |
435,000 |
4 |
Yamato Transport Co., Ltd. |
Logistics (International) |
Sendai, Japan |
393,000 |
5 |
BMW |
Automotive (International) |
Easton, PA |
348,000 |
6 |
Senko Co., Ltd. |
Logistics (International) |
Tokyo, Japan |
314,000 |
7 |
Goncalves |
Manufacturing (Regional) |
Mexico City, Mexico |
283,000 |
8 |
SDA Express Courier SpA |
Logistics (Domestic) |
Bologna, Italy |
254,000 |
9 |
Amazon Web Services |
E-commerce (International) |
Dulles, VA |
182,000 |
10 |
Kering Italia Spa |
Retail (International) |
Bologna, Italy |
178,000 |
11 |
Kasei, Inc. |
Manufacturing (International) |
Osaka, Japan |
172,000 |
12 |
Agata |
Retail (Domestic) |
Piotrków II, Poland |
112,000 |
13 |
Conewago |
Manufacturing (Regional) |
Elizabethtown, PA |
100,000 |
14 |
Hermes Parcelnet Limited |
Retail (International) |
Hemel Hempstead, UK |
80,000 |
15 |
SDA Express Courier SpA |
Logistics (Domestic) |
Bologna, Italy |
43,000 |
16 |
Stericycle |
Healthcare (International) |
Dallas, TX |
40,000 |
17 |
Rhenus Chemical Logistics |
Logistics (International) |
Szczecin, Poland |
29,000 |
|
|
|
Total |
4,424,000 |
Prologis' Second Half 2018 Build-to-Suit Starts*
|
Customer Profile |
Market |
Size (SF) |
1 |
Retail (Domestic) |
Moreno Valley, CA |
1,332,000 |
2 |
Logistics (International) |
Toronto, Canada |
847,000 |
3 |
Retail (Regional) |
Cincinnati, OH |
755,000 |
4 |
Retail (Domestic) |
Chicago, IL |
750,000 |
5 |
Manufacturing (International) |
Chicago, IL |
706,000 |
6 |
Retail (International) |
Apodaca, MX |
588,000 |
7 |
Manufacturing (International) |
Riverside, CA |
492,000 |
8 |
Logistics (Domestic) |
Livermore, CA |
374,000 |
9 |
Logistics (International) |
Tilburg, The Netherlands |
325,000 |
10 |
Logistics (Domestic) |
Pozzuolo, Italy |
235,000 |
11 |
Logistics (International) |
Douvrin, France |
210,000 |
12 |
Wholesaler (International) |
Prague, Czech Republic |
106,000 |
13 |
Logistics (International) |
Paris, France |
89,000 |
14 |
Automotive (International) |
Hesse, Germany |
75,000 |
15 |
Logistics (Domestic) |
Bergamo, Italy |
55,000 |
|
|
Total |
6,939,000 |
As of September 30, 2018, the company owned or had investments in, on a wholly owned basis or through co-investment ventures, properties and development projects expected to total approximately 771 million square feet (72 million square meters) in 19 countries.
"In 2018, build-to-suit activity remained strong across Prologis' global platform. Our development-ready land bank is located near large population centres and continues to be a major contributor to our build-to-suit success. These global market locations also provide exceptional optionality for our customers' Last Touch® requirements," said Michael S. Curless, chief investment officer, Prologis.