Prologis announced full results of its 2016 operations in Central and Eastern Europe. 

“It was a historic year for us, both globally and across Europe, including Central and Eastern Europe,” said Martin Polak, senior vice president and regional director at Prologis CEE.

“The occupancy level in our portfolio was record high and so was the volume of leasing transactions. The rate of client retention was also high – four out of five our clients prolonged leases with us. Last year Prologis leased 1.8 mln sqm of warehouse space in Central and Eastern Europe. New leases concerned 700,000 sqm and prolonged contracts amounted to a total of 900,000 sqm. The remaining amount included short-term contracts. The occupancy index in our portfolio in the region was at a record level of 96.4 pct. Prologis’ portfolio in Central and Eastern Europe included 4.5 mln at the end of 2016. In 2016 Prologis invested in all four countries in Central and Eastern Europe that it operates in. The company started the construction of 18 buildings with a combined area of 331,000 sqm. “70 pct of them were built-to-suit facilities and 30 pct were speculative ones. The level of investment increased by 65 pct compared to last year. The company implemented its strategy of selective development on key markets characterized by a low level of vacancies. Its largest projects launched included a BTS facility for Tesco at Prologis Park Galanta-Gan in Slovakia (56,000 sqm) and a BTS facility for Agata in Prologis Park Piotrków II (42,200 sqm). Its largest completed project was a BTS facility for Sportisimo (Prologis Park Prague-Rudna in the Czech Republic, 34,200 sqm). The company completed the construction of a total of 14 new facilities with a combined area of 251,000 sqm, including eight buildings the construction started and finished in 2016. “2016 was the most active year from 2008 for Prologis in the CEE region. A low supply of warehouse space had an influence on the revival of investment moods and a quicker decision making by clients in terms of the lease of available facilities,” summed up Martin Polak. In 2016 the company started five new projects in Poland with a combined area of 96,500 sqm, two of which were completed last year. Out of completed projects an SBU building in Chorzów. The company also launched a new park in Stryków. The occupancy level of its Polish portfolio amounted to 94.8 pct. “Poland is one of the main development markets in terms of logistic properties in Europe, both in projects carried out as built-to-suit and speculative ones In 2016 we invested on key markets for us i.e. in Central Poland, Wrocław, Szczecin and Chorzów,” said Paweł Sapek, senior vice president & country manager Prologis in Poland. While actively operating in four CEE countries with an operating portfolio of 4.5 mln sqm Prologis is the largest owner and manager of distribution facilities in Central and Eastern Europe (as at December 31st, 2016).

Source: Eurobuild CEE