Prologis and GIC Launch $1.6B U.S. Logistics Build-to-Suit Venture
Event summary
- Prologis and GIC formed a $1.6B joint venture to develop build-to-suit logistics facilities in major U.S. markets.
- The venture includes an initial portfolio of 4.1M square feet with capacity for future investments.
- Build-to-suit projects accounted for over 60% of Prologis' $3.1B development starts in 2025.
- Prologis Strategic Capital manages $102B in assets, including $67B of third-party capital.
The big picture
The joint venture underscores the resilience of build-to-suit logistics development amid strong e-commerce growth and supply chain reshoring. Prologis, with $230B in AUM, is leveraging its development platform to attract long-term institutional capital, reinforcing the sector's appeal as a stable, high-demand asset class. This deal highlights the strategic shift toward purpose-built facilities designed for automation and proximity to end markets.
What we're watching
- Capital Deployment Pace
- How quickly the joint venture will scale beyond the initial $1.6B commitment and 4.1M square feet.
- Customer Commitments
- Whether the venture can maintain high pre-leasing rates given the long-term nature of build-to-suit projects.
- Strategic Capital Growth
- The extent to which this partnership will expand Prologis Strategic Capital's asset management business.
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