Prologis and GIC have formed a new $1.6 billion joint venture focused on US build-to-suit logistics facilities, leveraging Prologis's development platform. The Singapore sovereign fund seeded the venture with a portfolio of over 4.1 million square feet. This marks Prologis's second build-to-suit JV this year, following a $1.5 billion partnership with Realty Income. GIC, the world's largest institutional real estate investor, aims to capitalize on strong e-commerce growth and supply chain re-shoring driving demand for modern industrial spaces.

Net absorption in US industrial real estate surpassed 50 million square feet quarterly in late 2025, up from 2024, signaling robust occupier demand for customized facilities. Prologis reports over 60% of its 2025 development projects were build-to-suit, reflecting a strategic shift. Cushman & Wakefield notes occupiers need facilities supporting automation and higher power loads, making customized solutions like build-to-suit increasingly vital. GIC's institutional push into US net lease and build-to-suit strategies gained prominence through its landmark $14 billion STORE Capital privatization in 2022.

Prologis is also actively tilting toward build-to-suit, aligning with the sector's growth trajectory. The new venture underscores the strategic importance of long-term institutional capital deployment in industrial real estate as a hedge against economic volatility and a play on sustained logistics demand.