The Daily Dig
Prologis and Singapore-based institutional investor GIC have formed a $1.6 billion joint venture to develop and own build-to-suit logistics facilities across major U.S. markets. The announcement came on March 19, 2026.
The venture launches with an initial portfolio of approximately 4.1 million square feet and is structured to scale as customer commitments are secured. It will operate under Prologis Strategic Capital, the company's asset management arm, which manages $102 billion in assets including $67 billion of third-party capital.
Build-to-suit has become an increasingly significant piece of Prologis' development pipeline. In 2025, the company started $3.1 billion in development projects, with build-to-suit accounting for more than 60% of those starts. That share reflects what Prologis CEO Daniel S. Letter called "customer conviction": tenants making long-term commitments to specific locations, custom functionality, and occupancy certainty rather than leasing available spec space.
Demand for purpose-built logistics facilities is being shaped by e-commerce growth, supply chain reshoring, and the rising need for automation-ready buildings with high throughput capacity and proximity to end markets. For institutional capital like GIC, the build-to-suit model carries an attractive risk profile: projects are typically pre-leased and treated as mission critical infrastructure by the tenants who occupy them.
Project Snapshot:
Joint Venture Partners: Prologis, Inc. and GIC
Total Capital Commitment: $1.6 billion
Initial Portfolio Size: 4.1 million square feet
Project Type: Build-to-suit logistics facilities
Geography: Major U.S. markets
Operating Platform: Prologis Strategic Capital
Prologis 2025 Development Starts: $3.1 billion
Build-to-Suit Share of 2025 Starts: 60%+
Prologis AUM: $230 billion
Strategic Capital AUM: $102 billion (including $67B third-party)
Announcement Date: March 19, 2026
TheJobWalk Thoughts
A 4.1 million square foot pipeline backed by $1.6 billion in committed capital is a real procurement window. GCs and specialty subs active in tilt-up, structural steel, and industrial MEP work should be positioning with Prologis' development teams now, not when sites are announced.
Build-to-suit projects move differently than spec. Tenant requirements drive design, which means earlier subcontractor involvement, tighter coordination on automation infrastructure, and longer preconstruction cycles. Teams that understand that sequencing have an edge.
The 60% build-to-suit share of Prologis' 2025 starts is a market signal worth tracking. Pre-leased, committed work is driving a growing share of industrial volume. For suppliers and sales teams, that's where the durable pipeline is.
