Prologis, the world’s largest owner and operator of logistics real estate, has agreed to buy a $3.1 billion portfolio of industrial properties from Blackstone.
The deal includes 14 million square feet of warehouse space in 10 states, such as California, Texas, and Florida.
The acquisition is driven by the strong demand for warehouse space, fueled by the growth of online retail. Prologis believes that the portfolio is well-positioned to benefit from this trend. It is strategically located in key markets with strong population growth and high e-commerce adoption.
The deal is set to close in the third quarter of 2023.
This acquisition is part of Prologis’s ongoing efforts to expand its warehouse footprint. In 2022, the company acquired Duke Realty for $26 billion and has made several smaller acquisitions as well.
The growth of online retail is the primary driver behind the strong demand for warehouse space. Retailers require more warehouses to store their goods as more people shop online. This trend is expected to continue as online retail keeps growing.
Prologis’s acquisition of the Blackstone portfolio confirms the persistent strength in the demand for warehouse space. It also reflects Prologis’s confidence in the future of the industrial real estate market.
