ProLogis in 2010: lease vacant space, sell land bank

ProLogis presented its views today on 2009 and what the company expect from 2010. Ben Bannatyne, managing director for ProLogis in CEE was quite frank about last year, saying that no one in the industrial development business, or in the property business in generall, would miss it.

For ProLogis, 2009 was a year with virtually no new development, save for a couple BTS projects, which seem to have salvaged industrial developers from total idleness.

This year won’t be much better, with the company planning to focus on securing tenants for roughly 400,000 sqm of the company’s existing, unleased space. It will also make an effort to keep existing tenants and “monetize” — sell — some of its land bank. Bannatyne said that land originally secured for the second phase of an industrial park in Szczecin is likely to be carved up and sold to owner occupiers. A similar fate likely awaits a plot in the town of Września, near Poznan. No new land acquisitions or spec developments are planned, though Bannatyne said the situation on the market could change quickly. “The cycles on the Polish property market are so much faster,” he said.

An interesting figure was brought up by CBRE’s Joanna Mroczek, who pointed out not just that there’s around 1m sqm of unleased industrial space in Poland, but that this roughly the same amount that was delivered in 2009. In hindsight, Bannatyne commented, the market would have been better if the deliveries didn’t happen.

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