Prologis has announced its second quarter activity in Central and Eastern Europe (CEE).
The company leased more than 400,000 sqm of distribution space, an increase of more than 7 percent over the same period last year. Demand continues to be driven by reconfiguration of the supply chain and e-commerce.
Prologis ended the second quarter with 94.8 percent occupancy of the company’s operating portfolio, confirming the stabilisation of the market and strengthening of Prologis’ position in CEE. At the end of the quarter, the company’s operating portfolio was 4.35 million sqm. Adding developments, the portfolio was 4.52 million sqm.
During the quarter, Prologis commenced construction of four distribution facilities, totalling more than 123,000 sqm, three of which are build-to-suit (BTS) facilities. The fourth one is a speculative facility, totalling 21,000 sqm, which is already 23 percent pre-leased. Including development starts in the first quarter, the company currently has nine buildings under construction, totalling 217,000 sqm. The majority of the developments are in existing Prologis parks, located in core logistics markets.
“The second quarter of 2016 shows that the logistics real estate market in Central and Eastern Europe is growing steadily and offering encouraging prospects. There is a growing demand for logistics space and, consequently, the occupancy rate across our portfolio is on the increase, reaching nearly 95 percent,” said Martin Polak, senior vice president and regional head for Prologis CEE. “The expected growth in e-commerce and the consequent increase in logistics space occupancy rates has become a reality. A growing number of our customers are companies from that sector, which speaks of the quality and suitable location of Prologis facilities.”