Leasing more than just square metres

According to the Polish Leasing Association, in the first half of 2023, leasing companies provided financing worth PLN 47.828 bln, an increase of 14.9 pct compared to the same period last year. Light vehicle financing led the way with 46.9 pct of the financing structure, together with trucks accounting for a total share of 72 pct. Machinery and other equipment accounted for a quarter of the value of contracts. Other assets such as IT equipment, aircraft, ships, rolling stock and other vehicles had a 4.3 pct market share, while real estate consistently reaches 0.6 pct each year. Experts forecast that by the end of the year, total assets financed by leasing companies could exceed PLN 100 bln. The growing demand for this form of financing could translate into an increase in investment, including in the logistics sector.

Service, not product

Until recently, the warehouse real estate sector operated within a conservative framework. Warehouses were treated as products, and what mattered most for customers was the location of the facility, its quality – preferably confirmed by an environmental certificate – and its access to skilled workers. This approach, however, is insufficient for today’s highly demanding and competitive market. Today, logistics operators expect warehouse space developers to provide comprehensive services that cover the entire process of creation and cooperation – from the design work through the construction to the delivery of a building ready for customers, followed by property management and leasing for years or decades. The meaning of the popular industry term ‘tailor-made’ has also changed. It is no longer enough just to have a warehouse designed and built to suit the individual needs of the customer or of the business it intends to conduct in the warehouse. Spaces must also be prepared for what the future will bring; they must be adaptable in order to incorporate innovative technical solutions that will be heavily adopted in logistics in the near future.

“Customers expect comprehensive services today – a set of benefits, products and solutions that they really need. They prefer to get everything from a single supplier on the most favourable terms, with optimal delivery times, high-quality services and after-sales support. This approach redefines the role of the developer in the supply chain, making us an important partner when building or expanding a warehouse and distribution centre. That’s why we created the Prologis Essentials platform,” explains Michal Królik, the essentials solutions manager at Prologis.

Prologis Essentials

As a new solution in the warehouse market, Prologis Essentials is the answer to the key challenges currently facing the logistics industry. The service includes end-to-end warehousing solutions for sustainable logistics across all key business areas – current operations, energy and sustainability, mobility and workforce. “Prologis is the first warehouse space developer in the world to offer customers much more than a warehouse or office lease. We offer a turnkey facility, ready to do its job from day one. With Prologis Essentials, you can conveniently equip your warehouse with everything you need to run your business profitably, quickly and smoothly. You can also make upgrades or necessary replacements, as well as put in place temporary solutions, making life easier and saving valuable time,” says Michal Królik.

Understanding needs and consulting

The starting point for proposing appropriate solutions through Prologis Essentials is an analysis of the customer’s needs and capabilities. Sound advice, based on the knowledge and experience gained during Prologis’ 40 years on the global market and more than 25 years of operating in Poland, is vital. Long-standing partnerships with suppliers of logistics solutions – from racking systems to protective barriers and warehouse robots – are also key. The advantageous terms of cooperation and high service standards guarantee relatively short delivery times and attractive prices as well as appropriate warranty and after-sales services.

“This solution would, for example, allow an e-commerce company to rent space from us and start operations from day one – using the racking, forklifts, AGV autonomous trucks and even office equipment that we provide. In short, with Prologis Essentials, entrepreneurs can focus on their business while we take care of all the logistics aspects. It’s a huge time saver, as customers don’t have to search for individual items of equipment from different suppliers,” Michal Królik explains.

Greater operational efficiency

The services offered through Prologis Essentials can be compared to the approach now taken by residential developers, who offer not just shell apartments, but also personalised finishing of properties and preparation of the premises for occupancy. In the case of a warehouse, Prologis customers can count on a fully equipped facility, ready for logistics processes from the first day of the lease agreement. One of the pillars of Prologis Essentials is the provision of solutions for improving operational efficiency. These include machinery and equipment for handling goods – mostly forklifts and stretch- wrappers, soon to be joined by floor cleaning machines – as well as racking systems. Waiting times for these types of products can typically be up to several months, especially in the context of recent problems with broken supply chains in the global market, but Prologis Essentials offers greater flexibility in terms of timing as well as in ways to finance projects. There are three options to choose from: purchase, lease, or short-term and long-term rental, for both new and used machinery and equipment. Acquiring such equipment through Prologis Essentials is attractive not only thanks to better delivery times, but also due to more affordable prices. In the case of racking, for example, significant savings can be expected. With an investment of EUR 187,000, customers can save up to EUR 80,000 by renting racks from Prologis compared to buying them on their own. In addition, Prologis offers the opportunity to repurchase rented equipment at the end of the lease agreement. This provides even more flexibility while reducing customers’ operating costs.

Benefits for the planet

Environmental issues are extremely important in the design of supply chains and are now a vital part of business strategy for many companies. Prologis prioritises sustainability issues, publishing ESG reports every year since 2006 to detail actions taken and achievements reached by the company in each of the three areas represented by the acronym – Environment, Social Responsibility and Corporate Governance. All Prologis warehouses are accredited by BREEAM, the world’s leading certifier of environmentally-friendly buildings. Prologis has adopted ambitious climate goals, including achieving net zero carbon from its operations by 2030 and across its supply chain by 2040. The Prologis Essentials portfolio is designed to support these goals, the wider circular economy, and the adoption of renewable energy sources.

SolarSmart – energy from the sun

As part of Prologis Essentials, SolarSmart – a system for mounting solar panels on warehouse roofs – is available in most European countries. Combined with StorageSmart, which provides special integrated batteries, customers can save a significant amount on their energy bills. The entire project is handled by Prologis – from the design and obtaining necessary permits, to the installation work and regular maintenance. Prologis aims to significantly ramp up the capacity of photovoltaic installations in its global portfolio to 400 MW, as using green energy will allow the company to reap the benefits of its own power supply while reducing parks’ carbon footprint.

Complementing this system is the installation of energy-efficient LED lighting which is three times more efficient than traditional lighting, reducing energy costs by up to 80 pct. Prologis also tailors lighting systems to meet the specific needs of particular customers, including the installation of motion sensors to ensure that the lights are on only when this is actually needed.

Safety first

Creating a safe and productive work environment is another area where Prologis Essentials comes to the rescue. The platform offers systems to protect equipment, furnishings and machinery, as well as health and safety solutions, with a particular focus on vehicle interlock systems and safety barriers.

Electromobility

European supply chains are moving toward net zero and increasingly need to meet stringent environmental standards. Prologis has therefore prepared solutions for fleet electrification and vehicle charging at logistics parks that will accelerate the path to zero-emission logistics. Prologis customers benefit from the developer taking responsibility for design, installation and grid connection, as well as ongoing operation and maintenance of electromobility infrastructure.

“The knowledge and experience that we have gained over more than four decades of operating on the global market make Prologis the perfect partner for the integration of warehouse spaces with comprehensive solutions. Through our innovations, we are at the forefront of an evolution in logistics real estate that sees warehouses treated as a service. Customers save time and money while benefiting from wider choice and greater security in task completion. This is a profitable investment – not only for customers, but also for Prologis, as it builds trust and creates strong partnerships,” concludes Michal Królik.

The logistics industry is undergoing major changes and businesses are increasingly aware of the need to optimize management costs and environmental aspects. The goal of Prologis Essentials is to adapt warehouses to meet the changing needs of customers in all key areas of logistics operations in a way that is comprehensive, profitable, and sustainable.