Warehouse developers now more cautious

Pre-leases are now an important criterium Currently, the highest investment activity is seen for projects that have a secured pre-leasing level of at least 50-60 pct of the space. This level of occupancy is often a prerequisite for the start of construction - developers today are placing great emphasis on reducing risk, which makes fully speculative developments rare. The market has clearly become polarised. On the one hand, there are players such as GLP, CTP and Hillwood, who are still actively developing speculative projects - mainly in prime locations where demand is stable and predictable. On the other hand, some developers prefer the pre-lease model, launching projects only after leases have been signed. BTS (build-to-suit) and BTO (build-to-own) projects are still an important market segment, especially for tenants with specific technical requirements or who are interested in facility ownership. However, they are being developed selectively, mainly by experienced developers