Prologis reported its Q2 2016 results, revealing that its occupancy rate was 96.1% in the quarter, up from 95.4% in Q2 2015. The company’s occupancy rate in Europe was up by 1.3 percentage points year-on-year.
Globally, customer retention increased from 79.0% to 82.6% over the same period, while net effective rent growth was 17.8%, up from 16.6% in Q2 2015. Net effective rent growth was particularly high in the US at 23.5%.
Prologis’ Chairman and CEO, Hamid Moghadam, commented, “Demand remains ahead of supply in both the U.S. and Europe, leading to all-time low vacancy rates. In spite of Brexit, our key business drivers remain intact, and we do not anticipate a material operational impact. Consumers continue to migrate toward e-commerce, and companies still need to adapt their supply chain strategies, driving demand for high-quality, well-located logistics facilities.”