Rental trends in the first half of 2020
In Europe signed GLP leases with XPO in France, Bleckmann and Focus International (part of JD Sports Fashion) in the UK and ID Logistics, a leading international e-commerce company, in Germany totaling around 220,000 square meters. In addition, GLP recently completed the acquisition of the Central and Eastern European logistics real estate portfolio from the Goodman Group, thereby expanding its European presence to eleven countries.
In Brasil signed GLP leases for 385,000 square meters, which corresponds to a growth of 106 percent compared to the same period last year. These include the new letting of 21,000 square meters in the GLP Park Cajamar II to one of the largest e-commerce companies in Latin America and 46,000 square meters in the GLP Park Louveira to a leading global logistics company. The demand from existing customers for expansion space continues to be a key growth driver. Existing customers account for 74 percent of rentals in Brazil in the first half of 2020.
E-commerce: companies in Asia are expanding
In China GLP signed new leases and contract extensions of 7.4 million square meters in the first six months of 2020. This corresponds to growth of 48 percent compared to the same period last year and more than 80,000 square meters per day. The growth in leasing is driven by large customers in the contract logistics and e-commerce markets. These companies are expanding because they operate nationwide for organized retail and domestic consumption. Due to the growth in e-commerce and because consumers expect faster and faster deliveries, companies are likely to continue to outsource to contract logistics companies in the future in order to offer more flexible full-filing.
Food and online groceries are among the fastest growing areas for GLP. The company recently signed a new lease with Bestore (Liangpinpuzi), one of the most popular Chinese snack brands. In the Chinese province of Hunan, warehousing and distribution are also supported by 7-Eleven, which recently opened its first store in Changsha. With sales of $ 70,310, the global sales record was exceeded on a single opening day.
In Japan GLP signed 42 leases covering around 632,000 square meters, an increase of 17 percent compared to the same period last year. E-commerce was a major driver of demand and accounted for around 34 percent of rentals in this country in the first half of 2020. This included contracts for pre-rentals of over 100,000 square meters in the GLP Alfalink Sagamihara IV in the Tokyo area and customers who signed new rental contracts nationwide Contract extensions signed.
GLP Alfalink is a new brand for logistics real estate, with which GLP Japan takes on a pioneering role. Their unique design is designed to enable holistic supply chains from product development to delivery to individual addresses, to optimize operational efficiency and to offer the customer a value driver. The Sagamihara and Nagareyama projects – currently under development – are two of the largest modern logistics parks in Japan, planned according to an overall concept. At the time of their completion, they will offer more than 650,000 and 900,000 square meters of gross floor space, respectively.
In India the rental business tripled within a year. From January to June 2020, the IndoSpace team signed leases for 238,000 square meters. The growth drivers were the growing demand from e-commerce, contract logistics and multinational industrial companies. Existing customers include Amazon and Dhoot Transmission. New customers in the IndoSpace portfolio include First Cry, McWane, Rexel, BYJU´s and B L Harbert.
Sustainable real estate solutions – also for e-commerce
“We are pleased with the latest success in our rental activity. We will continue to focus on offering customers and investors in all markets in which we operate high-quality, innovative and sustainable real estate solutions, ”said Ming Mei, co-founder and CEO of GLP.
“E-commerce is becoming increasingly important as a retail channel worldwide. Changing consumer behavior as a result of Covid-19 is accelerating development. In this new normal, companies are reshaping their supply chains because they want to rebalance efficiency and resilience. They also re-evaluate the ideal size for their inventory. As a result, the demand for warehouses and logistics services and real estate will continue to increase worldwide, ”explains Ming Mei.
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