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ProLogis 2010 leases reach 1 mln sqm in CEE

Logistics real estate developer ProLogis signed lease agreements for more than one million square meters of space in the whole CEE region, with more than 61% in Poland only, the company announced.

ProLogis has never before leased so much space in Poland and the region within a year. This was a record result in the history of the company going back thirteen years!

Last year, ProLogis leased more than one million of square meters, representing more than 40% market share in the region in terms of the size of the transactions completed in 2010. New contracts have been concluded for a total of 488,300 square meters of warehouse and office space. The company has also renewed lease contracts for a total of 582,700 square meters.

At the end of the year, only 8,000 square meters were available for lease in ProLogis portfolio in Slovakia. The dynamically growing demand for industrial space in the Czech Republic decreased the available space in ProLogis’ Czech portfolio by more than 55% compared with the year 2009. Also in the Czech Republic the company signed contract for the development of 22,350-square meter build-to-suit facility for Globus, one of the largest hypermarket operators in the Czech Republic. This development will serve as the Czech hub of Globus for temperature controlled logistics.

“In Central and Eastern Europe demand concentrated mostly in Poland and in the Czech Republic,” summarized Ben Bannatyne, ProLogis managing director Central & Eastern Europe. “61% of all our lease agreements signed in Central & Eastern Europe were signed in Poland. We owe this result to our specialists and business partners, who are able to satisfy the needs of even the most demanding customers.”

“Our absolute advantage is having distribution facilities available for immediate lease and use, regardless of the size required by the customer. If a customer seeks a warehouse and cannot or does not want to wait for a BTS-type facility, the offer of ProLogis is the best solution,” said Bartosz Mierzwiak, market officer ProLogis for Poland. “In 2011, we plan to further focus on leasing the remaining available warehouse space and on extending lease agreements with our existing clients. The industrial market in Poland and the region will continue to concentrate on the build-to-suit offer, with only few speculative facilities being delivered. Our objectives will also include targeting pre-let opportunities, and other ways of monetizing our land bank.

“Optimistic economic forecasts for Central and Eastern Europe allow us to assume that the market of modern distribution facilities will see an increase in the year 2011,” said Bannatyne. “As is the case now, the demand will be generated mostly by companies in the logistic sector, and by the growing retailers and manufacturing companies. It is worth noting that due to the decreasing stock of available warehouse space, this year may be the last opportunity for our customers to capture industrial space at relatively low rent rates.” (BBJ)