FIBRA Prologis Reports 98.4% Occupancy Rates in 2Q24

FIBRA Prologis reported a 98.4% occupancy rate for its industrial properties as of June 2024, slightly above the 98% recorded for the same period in 2023. The company's total gross leasable area (GLA) for its industrial properties was 4.4 million m² by the end of 2Q24.

FIBRA Prologis achieved a record margin in 2Q24, primarily due to high occupancy levels driven by increased corporate relocations. From April to June 2024, the effective net rent change for FIBRA Prologis was 58.1%, nearly doubling the 30.9% reported in the same period of 2023. "Operational and financial results for 2Q24s continue to show solid market conditions. We achieved a record rent change on roll over and continue to have a strong occupancy,” said Héctor Ibarzabal, CEO, Fibra Prologis. 

Ibarzabal noted a slight increase in vacancy rates, attributed to higher market supply, space consolidation by some clients, and increased build-to-suit leasing activity. Consequently, the vacancy rate rose to 2.7%, a 100 basis point increase compared to 2Q23.

The net absorption of space for FIBRA Prologis reached 511,978m², marking a 29.6% decrease from the previous year. In response to these trends, the company has revised its year-end vacancy estimate from an initial 2% to 3%.

Despite these adjustments, FIBRA Prologis remains optimistic. The projected net absorption for its markets has been increased to 2.9 million m², a 19% rise from the initial estimate of 2.5 million m². As of June 30, 2024, Fibra Prologis managed 236 properties dedicated to logistics and manufacturing, with 4.4 million m² of GLA.