25 May 2012
Prologis, Inc. (NYSE: PLD), the leading global owner, operator and developer of industrial real estate, today announced the launch of a new build-to-suit 5 year lease initiative in the UK to meet the needs of customers seeking modern distribution space on a short term basis.
In exchange for a 5 year lease commitment, Prologis will develop a high quality, sustainable distribution centre. The offer includes fit-out and because it is available on prime Prologis sites that already have detailed planning consent, new facilities can be fully operational within 10 months.
"Nearly all the stock that was built speculatively in 2007 and 2008 has been let," explained Andrew Griffiths, managing director of Prologis UK. "As a result, logistics operators have fewer options when they are looking for new space.
"We have been thinking for some time about how we can find an offer that meets our customers' operational needs and we believe that we have found a competitive solution with the build-to-suit 5 year lease initiative.
"This is the first time that high quality built-to-suit distribution centres have been available on short-term lease agreements in the UK and the initial reaction from the market has been overwhelmingly positive."
As of March 31, 2012 Prologis had approximately 18 million square feet completed and under development in the UK, as well as over 900 acres of land available for future development.