GLP has posted record leasing and development activity levels for its global logistics business in 2020, amid heightened demand for e-commerce capabilities during the Covid-19 pandemic.
Globally, the investment manager signed more than 244m sq ft of new and renewed logistics lease agreements over the last 12 months, up 57% year-on-year.
Some $5.3bn (£3.8bn) of new development projects, measuring 60m sq ft, also started in 2020 – surging by 75% year-on-year.
E-commerce now represents around 40% of GLP’s global portfolio, compared with 20-25% five years ago.
GLP estimates the pandemic has sped up the shift towards e-commerce and digital solutions “by at least two to three years”.
“We expect these changes to have lasting effects even as the world economy begins to recover,” stated the business. “This new landscape demands not just increased warehouse space but also the right technology, data and people to create efficiencies in the broader supply chain.”
Leasing in Europe soared by 69% year-on-year, with around 11m sq ft of agreements signed in 2020. Its line-up of new and repeat tenants include Amazon, DHL, Leclerc, ID Logistics, Royal Mail and XPO Logistics as well as SF Express, a global customer taking a first lease in Europe.
It was also GLP Europe’s busiest year for development, with $813m new developments starting in the period, up 113% year-on-year.
Additionally, the business said it is closing in on the acquisition of a logistics real estate portfolio in Central and Eastern Europe, which would mark its debut in the region and expand its footprint in Europe to 12 countries.
In China, GLP signed 201m sq ft of leases in 2020, rising by 53% from the previous year, and started $1.8bn of new developments.
GLP ended the year in Japan with 17m sq ft of new leases and renewals, about 60% higher than 2019. During the year it started more than $2.4bn of developments, primarily in Greater Tokyo and Greater Osaka.
Its Brazil operations posted its fourth consecutive year of record-breaking leasing activity, closing 2020 with 12m sq ft of new contracts – double the amount seen in the previous year. Of those, 65% were for e-commerce operations. New starts in the region totalled around 7m sq ft, located in São Paulo and Rio de Janeiro.
In India, GLP’s IndoSpace team signed 5.6m sq ft of lease agreements, up 36% year-on-year. Repeat customers included Amazon, Aptiv, LF Logistics and Reliance, while new brands included Alstom and pharma cold-chain logistics firm Kool-Ex.
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