Prologis Announces 2016 Activity in Central and Eastern Europe

15 February 2017

Record-breaking occupancy of 96.4 percent 1.8 million square metres of leased space 65-percent increase in new investments 18 new development starts

WARSAW – 14 February 2017 – Prologis, Inc., the global leader in logistics real estate, today announced full-year 2016 activity for its business in Central and Eastern Europe (CEE). 

Operating Performance  
The company leased1.8 million square metres in Central and Eastern Europe. New lease agreements accounted for 700,000 square metres and lease renewals for 900,000 square metres, with the balance short-term agreements.The CEE portfolio occupancy rate was a record 96.4 percent. 

At year-end, Prologis’ CEE portfolio was 4.5 million square metres. 

“We experienced a record-breaking year for Prologis - globally, across Europe and in Central and Eastern Europe,” said Martin Polak, senior vice president, regional head, Prologis CEE. “Occupancy and the volume of lease transactions reached an all-time high, and we saw a high customer retention rate—to illustrate, four in five of our customers renewed their leases with us.” 

Investment Activities  
In 2016, Prologis invested in all four of the CEE countries in which it operates. The company began construction of 18 buildings totalling 331,000 square metres—70 percent of that construction was build-to-suits and 30 percent was speculative development. New development starts increased over 2015 by some 65 percent. The company continued to pursue its strategy of selective development in key markets characterized by low vacancies.   

Development starts:

Completed developments:

In 2016, Prologis delivered 14 buildings totalling 251,000 square metres; among those, eight buildings were started and completed in the same year. 

“Last year was the most active in the CEE region for Prologis since 2008,” said Polak. “Low vacancy levels contributed significantly to increased development activity, and customers made faster decisions about space in order to stay ahead of shrinking stock.” 

Acquisitions  
Prologis acquired M0 Central Business Park in Hungary, and two fully leased buildings totalling 31,400 square metres became a part of Prologis Park Budapest-Sziget. In addition, the company acquired three hectares of land in Prologis Park Prague D1 East, and 22.6 hectares in Prologis Park Bratislava.  

Awards
Prologis won two prestigious awards at the 2016 Eurobuild CEE Awards. The company was recognized in the following categories: “Warehouse Developer of the Year, CEE” and “Best Warehouse Manager of the Year, Poland.” The latter award was given to Marta Kostyk, a Prologis property manager based in Lower Silesia. 

Prologis in Poland
In 2016 in Poland, the company launched five development starts totalling 96,500 square metres (with two buildings completed during the year). These developments include a completed and fully leased SBU (small business unit) building in Chorzów. Prologis also opened a new park in Stryków. The portfolio occupancy rate was 94.8 percent.    

“Poland is one of the main logistics real estate markets in Europe currently on a growth trajectory, both in terms of build-to-suit and speculative developments, and in 2016, we invested in the pivotal markets of Central Poland, Wrocław, Szczecin and Chorzów,” said Paweł Sapek, senior vice president, and country manager, Prologis Poland. “We continue to monitor the industrial real estate market as it transforms each year, and are glad that the industry is increasingly appreciative of our transactional transparency, the high quality of our buildings and the high bar we have set with our property management services.”   

With its active engagement in four CEE countries and an operating portfolio totalling 4.5 million square metres, Prologis is the leading provider of distribution facilities in Central and Eastern Europe (as of 31 December 2016). 

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