GLP announces record leasing, development activity for logistics business in 2020
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Logistics real estate investor, developer, and operator GLP business signed more than 22.7 million sqm of new and renewal lease agreements over the past 12 months globally, up 57% year-on-year. The business also initiated USD 5.3 billion or 5.6 million sqm of new development projects in 2020, up 75% year-on-year, according to a report by the Warsaw Business Journal.
E-commerce continues to be a strong driver of demand in the logistics real estate sector as internet penetration rates across major global markets continue to grow. Today, e-commerce represents approximately 40% of GLP's global portfolio, compared with 20-25% five years ago.
The pandemic has accelerated the shift towards e-commerce and digital solutions by at least two to three years and we expect these changes to have lasting effects even as the world economy begins to recover. This new landscape demands not just increased warehouse space but also the right technology, data, and people to create efficiencies in the broader supply chain.
In Europe, leasing activity grew by 69% year-on-year with approximately 1 million sqm of agreements signed in 2020 to new and repeat customers including Amazon, DHL, Leclerc, ID Logistics, Royal Mail, XPO Logistics as well as SF Express, a global customer taking the first lease in Europe. Additionally, GLP Europe recorded its busiest year ever of development with USD 813 million of new developments started in the period, up 113% year-on-year, whilst also replenishing its development landbank and closing on the acquisition of a logistics real estate portfolio in Central and Eastern Europe, which strategically expands its European presence to 12 countries.
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