Property owner Global Logistics Properties (GLP) is continuing to see hot demand for its warehouse space from companies scrambling to meet e-commerce demand, the company said Monday.
GLP signed a deal to lease 589,000 square feet of new and renewed space to "a leading global e-commerce company" in the U.S., the Singapore-based logistics property owner and operator said. The company has been investing heavily in American warehouse and distribution center space, including a $4.55 billion purchase of 200 U.S. facilities in 2015 that made GLP the second-largest logistics property owner and operator in the U.S.
The firm also leased out 1.6 million square feet of warehouse space to four leading third-party logistics providers (3PLs) serving a major e-commerce platform in China, and leased 108,000 square feet of space to a software company for online sales.
"Leasing demand from the e-commerce sector continues to drive demand for GLP's modern logistics facilities," GLP CEO Ming Z. Mei said in a statement. "Our comprehensive network and high quality specifications are well suited to accommodate the strong growing demand of e-commerce and we look forward to growing with our customers globally as they continue to expand."
In addition to renting space, GLP also offers consulting services to help clients pick the most efficient space for their operations. Using a warehouse-location optimization tool for its properties in China and Brazil, GLP says its e-commerce and retail customers can save approximately 20 percent in transportation costs by optimizing warehouse locations and delivery routes.