Across Europe, markets have stabilized as the impact of COVID-19 on logistics real estate has begun to dissipate, with strong investor demand for the sector driving yield compression. The rent growth outlook has become more positive as markets have steadied and supply-side constraints have remained intact, driven by low levels of speculative development in most continental European countries. Land scarcity is also affecting rent growth.  Prologis published its third-quarter global earnings announcement along with its European and Central European performance update.

Prologis has launched its Essentials Marketplace for Europe, a procurement tool that saves customers time when setting up, expanding or upgrading their operations. This online platform offers a raft of key warehouse interior products and fully managed instalment processes.

Over the second quarter, Prologis turned in a strong result both globally and in Europe, despite ongoing uncertainty due to the COVID-19 pandemic. The logistics sector remained resilient during the period with robust take-up levels and declining vacancy thanks to tight supply and sustained and growing demand.

Colliers International represented the Deichmann Group in the renegotiation of a lease agreement for 13,000 sqm of modern warehouse space in Prologis Park Wrocław III and in expanding by an additional 7,000 sqm. 

Logistics company FIEGE has recently signed three transactions for 38,600 square meters at Prologis Park Budapest-Harbor, of which 19,600 square meters are new leases, including the just-completed new Building 11 totalling 14,000 square meters. With a total leased area in the park of 59,000 square meters, FIEGE has become the largest customer of Prologis in Hungary.

Prologis is expanding its Hungarian portfolio with the acquisition of 13 hectares in the Budapest logistics market. Modesta Real Estate facilitated the transaction.

The sixth instalment of Prologis’ special report series suggests that any demand slowdown will be short-lived as logistics real estate is poised to benefit from the acceleration in the transition to e-commerce.

Prologis is extending its UK partnerships with climate change charity ‘Cool Earth’ and sustainability certification company ‘The Planet Mark’ to its European operations, as part of an initiative to reduce and mitigate whole-life carbon emissions in all its new logistics buildings. Under the programme, Prologis will work with Cool Earth to fund the protection of rainforests to mitigate unavoidable embodied carbon emissions in its new developments across Europe and, in this way, help protect an area of rainforest 31 times larger than the size of each building.

Retailers active in grocery, healthcare, consumer and diversified products will lead a sharp rise in demand for logistics real estate in the next two to three years as industries across the board implement lessons learned from the COVID-19 pandemic and adapt their supply chains to the “new normal”, Prologis predicts in a new research report.

Due to the recent growth of interest in online shopping driven by the coronavirus pandemic, a leading logistics operator in Poland has decided to expand its warehouse footprint by leasing 15,000 sqm of temporary space in Prologis Park Piotrków Trybunalski I. Savills assisted one of e-commerce leaders in Poland in the leasing process.