GLP leases more than 8.5 million sqm globally in 1H 2018

Logistics facilities and technology-led solutions provider GLP has signed more than 8.5 million sqm (92 million sqft) of global lease agreements in the first half of 2018 as it continued driving customer value through a strong global portfolio of premium locations and innovative use of technology, the company said.

Steve Schutte, COO of GLP, said: “Innovation and technology are increasingly critical components of the evolving logistics landscape. These leases highlight our continued focus on creating a smart logistics ecosystem built around our vast infrastructure network. A GLP warehouse serves as a connecting point for customers to access the latest advancements in automation, robotics, data analytics and other adjacent growth sectors, to ensure the highest possible level of operational efficiency.”

Highlights of the recent GLP leasing include:

• Japan – GLP is furthering its partnership with Japanese e-commerce company Rakuten with the signing of lease agreements totalling 155,000 sqm (1.7 million sqft). Rakuten plans to establish its Tokyo and Osaka fulfilment hubs at GLP Nagareyama II and GLP Hirakata III, respectively. Both these developments are LEED Gold certified modern logistics facilities that will enable Rakuten to optimise supply chain efficiency.
• China – Signed 5.6 million sqm (61 million sqft) of leases with leading third-party logistics and e-commerce customers including BEST Inc, JD.com and SF Express. Demand in China continues to be driven by consumption upgrading especially from the food, auto parts and consumer goods sectors.
• Europe – Signed 351,000 sqm (3.8 million sqft) of leases across the UK and Continental Europe. One of the largest leases was signed with B&Q, a home improvement retailer, in Swindon, UK. In Germany, investment company Gazeley is working with one of the world’s largest e-commerce companies to deliver a 123,000 sqm (1.3 million sqft) logistics and distribution warehouse in Westfalia.
• US – Signed 1.9 million sqm (20.8 million sqft) of leases, of which 525,000 sqm (5.7 million sqft) were new lease agreements. GLP shared that demand continues to outpace supply, driven by growth in e-commerce and multi-channel retail operations. GLP’s lease ratio in the US is currently at 94%.
• Brazil – Established a new customer relationship with pharmaceutical store chain operator Drogarias Pacheco with the signing of a 28,000 sqm (301,000 sqft) lease in Rio de Janeiro. GLP also expanded its partnership with e-commerce company Mercado Livre in Brazil which tripled its space requirements to lease 51,000 sqm (549,000 sqft) with the company.

By Muneerah Bee