Logistics property giant Prologis has reported a record occupancy rate of 98% across its European portfolio at end 2018.
The company reported that it signed 205,059 m2 of new leases and 385,501 m2 of lease renewals, with total leasing activity for the year reaching 3.06 million m2, an overall decrease year-on-year.
In the fourth quarter, the company started 12 new developments in the Czech Republic, France, Italy, the Netherlands, Slovakia and the United Kingdom totalling 287,783 m2; 31.1% was build-to-suit and 68.9% was speculative.
For full-year 2018, Prologis started 15 build-to-suit and 22 speculative projects with a combined total of 918,076 m2, of which 47.6% is pre-leased.
'Our portfolio has never been in better shape,' said Ben Bannatyne, president, Prologis Europe.
'Demand is healthy, and we finalised our multi-year disposition programme ahead of schedule, redeploying those proceeds into development,' Bannatyne added.
Prologis acquired six buildings in the Netherlands, Spain, Sweden and the UK in the quarter with a total of 105,367 m2 and six land plots in the Czech Republic, France, Italy and the Netherlands with a net rentable area of 218,323 m2.
Full-year 2018 building acquisitions totalled 157,663 m2 and land of 1.7 million m2.
Full-year 2018 building dispositions totalled 1.75 million m2 and land sales comprised some 1.38 million m2. At quarter-end, the company owned or had investments in, on a wholly-owned basis or through co-investment ventures, properties and development projects totalling 16.3 million m2 in Europe.
'Market conditions remain very good as demand is diverse and broad-based, while supply remains disciplined. Our strongest markets include the Germany, the Netherlands, Czech Republic, Italy, Spain, Hungary, and Sweden in order of net operating income,' Bannatyne concluded.
