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needs and the sizes and uses of their
vehicles. Without any of these features,
it’s difficult to do a great job for the
customer.”
And the nice-to-haves? “Those are
things like different use of space,
perhaps for funky offices. Or certain
colour patterns, such as a company’s
regular branding colour on the outside
walls.”
A good example of the importance of
paying attention to changing customer
needs is the most recent European
project announced by the company:
the development of a Small Business
Unit (SBU) facility totalling 16,000m
2
at Prologis Park, Chorzów, Poland.
The company says that the building
is already 45 percent pre-leased to
a global leader in express shipping
services and completion is scheduled
for the second quarter of this year.
With the smallest units starting at
just 828m
2
, the facility appeals to
customers looking for high-quality,
flexible office and distribution space
within the city limits. Designed with
cross docks, each unit is equipped
with a level-access gate and two
loading docks. Units can be combined
to customize space for individual
customer needs. This flexibility allows
for the most efficient use of the space
and helps to reduce operating costs.
It should be pointed out that a key part
of Prologis’s model is that it almost
always retains ownership of its logistics
properties. Customers will lease and
pay rent in the usual way – to the
benefit of both, in Henk Folmer’s view.
“We are working for the long term, a
period of 30 to 40 years,” he explains.
“All of the maintenance and property
management we do ourselves and
the customer knows this. We are not
a developer who builds to sell. We
are about being a resource over a
lifetime, growing with the customer and
working with them. Sure, we might sell
exceptionally, such as when a customer
is very keen to own or if, for instance, a
site is no longer energy efficient, but we
are in it for the long haul.”
It seems fair to enquire what the secret
to Prologis’s undoubted success
might be. “I think one key is that we
specialise in one product, that we have
chosen to be active in one sector,”
he muses. “We don’t build offices or
retail parks or tower blocks. When we
come to work in the morning, we know
what it is we do and our customers
recognise the quality of what we do
and our experience. As I said, we are
very careful in how we develop and
invest; because we are global, we
can work in multiple markets with our
customers. When they come with us,
they know what they are getting.”
Sustainability is, already, clearly
an essential part of the mix. “Our
customers know that it is not
enough to look at the rental rate
per square foot. They have to focus
on the overall cost of the building,
because better sustainability means
better all-round cost in the long run.
It’s about lighting, smart metering,
the insulation of the building – all
that adds up to a more price-
efficient total cost. And they know
we are in it for the long-term – for
instance, LED lighting was very
expensive a few years ago, now it
comes as standard in the buildings
we buy speculatively.”
So, what of the future for Prologis?
Where will they be in 10 years’
time? “I think we’ll be in the same
locations as today, actually,”
grins Folmer. “But I think we’ll
have grown and will have greater
control over those markets. I think
we’ll see flows and automation
altered by e-commerce. I also
think our customer base will have
consolidated, and so will our sector.
Some in our sector will not survive
another downturn. Increasing
standardization will also occur in
leasing and maintenance.”
37
Logistics Business Magazine | February 2016
PROPERTY
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