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

Senko, Co., Ltd.: Sendai, Japan. [Credit: Prologis]

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.

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