Prologis Europe Breaks 4Q Records
In addition to far exceeding the previous quarter’s leasing results, Prologis Europe broke its own record set in the fourth quarter of 2011 (1.03 million square meters / 11.1 million square feet) by two percent, achieving 1.06 million square meters (11.4 million square feet) of total space leased. Occupancy in the European portfolio also reached a new high at 93 percent.
“For the quarter, we had record leasing for the company at 40 million square feet, about 28 percent of which was in Europe,” said Gary Anderson, Prologis’ CEO for Europe and Asia. “When you peel back the onion with respect to Europe, the composition of the leasing is pretty interesting. Seventy percent of the leasing was in France, Germany, Poland and the Netherlands, our big markets. But 20 percent of the leasing was in Slovakia, the Czech Republic and Spain. The long and short of it is, we are seeing leasing in non-core submarkets that we haven't seen really for the past three years.
Some of the largest new lease deals highlighted the geographic diversity of the demand:
- In the United Kingdom - a leading retailer signed a build-to-suit agreement for a one million square foot (92,900 square meter) rail-served facility at Daventry International Rail Freight Terminal (DIRFT)
- In Germany - an entertainment company leased a 320,800 square foot (29,800 square meter) facility at Prologis Park Hamburg-Hausbruch
- In Poland – a retailer leased a 290,600 square foot (27,000 square meter) facility at Prologis Park Teresin
- In Spain - a logistics provider leased a 175,500 square foot (16,300 square meter) facility at Prologis Park Massalaves
In addition to new leases, Prologis Europe started build-to-suit and speculative development projects totaling 538,000 square feet (50,000 square meters) on two sites in Germany. The company also acquired 135 acres (55 hectares) in key markets such as the Netherlands and the United Kingdom.