Infill strategy

Sustainable development at Prologis begins with an investment focus that targets high-density infill property locations. The proximity of these locations to transportation hubs not only improves supply chain efficiency but also helps reduce truck emissions and environmental impacts beyond our facilities.

Our research paper about infill locations in North America examines the variables that define the two main types of industrial real estate sites (infill and greenfield) and concludes that a property owner having a long-term infill strategy enjoys superior occupancy, rental growth and returns, and efficient supply chain operations. In addition, the study shows that infill locations are more sustainable. Our conclusion is that for industrial property owners and developers, a comprehensive infill strategy is good for business while at the same time being good for society and the environment.

Key findings:

• Infill submarkets have enjoyed a 300 basis point advantage over greenfield sites in occupancy over the last ten years; this has led to much lower volatility in rents and a 220 bps annual return premium.
• 85% of the entire U.S. economic activity and population can be reached within a single day’s truck trip of the most economically dense areas.
• 21% supply chain cost savings can be realized from infill industrial centers.
• Infill sites demonstrate a 23% reduction in carbon emissions and overall air pollution versus greenfield sites.