Stocking up

Prologis is celebrating 10 years of business operations in Central and Eastern Europe, over which time its regional portfolio has grown to 2.6 million sqm of industrial space. The US-based company has a total of 135 facilities in operation or under development in Poland, the Czech Republic, Hungary, Romania and Slovakia, reflecting an investment of over $1.6 (zł.4.3) billion.

"Central and Eastern Europe are among the most important distribution markets anywhere in the world," said Gary Anderson, president and COO of Prologis Europe. "Prologis has experienced truly phenomenal growth here since entering the region 10 years ago, but we believe there is still an enormous opportunity ahead for continued investment and expansion."

According to the latest data from Cushman & Wakefield, over the first half of 2007 the Polish warehouse market spread from the capital out to regional markets. In that period, leasing rates for modern warehouse space increased 10-20 percent over the previous year, and experts anticipate that prices will to continue to increase along with rising investment costs.

Improved road infrastructure, particularly along the A1 motorway linking Tri-city with the Czech border, is a prime incentive for developers of industrial space as they try to meet growing demand. With a 29-percent share of the Polish warehouse market, Prologis shares the leading position in this segment with Panattoni.

Prologis services the logistics networks of large distribution companies, including manufacturers, retailers, transport firms and third-party logistics providers. In 2007, the company acquired Parkridge CE Development, which brought in 142 ha of land for development and 520,000 sqm of built-up properties.

Globally, the company operates in 105 markets across North America, Europe and Asia.