Prologis’ European arm has posted a rise in rents, although its pace of growth has slowed on the same period in the previous year.
Rents grew by 20.5% during the first quarter, compared with a 26.5% rise in Q1 2023.
Leasing activity across its portfolio totalled nearly 11.6m sq ft in Q1 this year, up from 11.1m sq ft in the same quarter in 2023.
New leases accounted for 1.6m sq ft, down from 2.8m sq ft in Q1 last year.
However, renewals increased to 10m sq ft, compared with 8.3m sq ft in the same period last year.
Earlier this week, Prologis said in its earnings call that it expects rents will continue to grow in the European business over the course of the year. Rents in most of its US markets remained flat.
The business also noted “stronger fund-raising interest” in Europe than the US, as stabilising cap rates and cash flow growth signals a corresponding rise in values.
Ben Bannatyne, president of Prologis Europe, said: “In the first quarter of 2024, demand for our high-quality logistics real estate remained steady across the 12 European markets where we operate. Germany and the Netherlands continue to be the strongest markets, given their high barriers to supply and strong demand.”
Image from Prologis
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