Prologis' Moghadam Speaks on the Value of Scale in Global Logistics
The Steers Center for Global Real Estate at Georgetown University invited Prologis chairman and CEO Hamid Moghadam to participate in a Q&A session during the university’s Real Estate Luminaries 2019 event on April 11.
Robert Steers, CEO of global real estate investment management firm Cohen & Steers, began by noting the huge scale of Prologis’ operations. Moghadam responded that in logistics you have to be global to be effective as a customer-focused business. He quickly wove together the different strands of the Prologis business model that creates a global logistics real estate platform and then highlighted its significance.
“A platform means that we have the ability to do four or five things that most real estate companies can’t do and most of it comes from scale,” Moghadam said. He went on to discuss cost-of-capital advantages, the ability to invest in technology as a revenue producing endeavor, being able to offer the best properties in markets that are hard to get into, and listening to a large base of customers to learn more about what they need and identify new business opportunities.