In a move that reshapes the global supply chain landscape, industrial real estate giant Prologis has finalized its acquisition of Duke Realty, the leading U.S. logistics REIT, in an all-stock transaction valued at $23 billion. This strategic merger marks a pivotal moment in the logistics property sector, with far-reaching implications for both domestic and international markets.
Strategic Expansion: Prologis Strengthens Market Position
San Francisco-based Prologis, already the world's largest industrial real estate company, has significantly expanded its footprint through this acquisition. The company now operates in 19 countries with approximately 1 billion square feet (93 million square meters) of properties and development projects, serving nearly 5,800 clients across B2B and retail/online fulfillment sectors.
The Duke Realty acquisition provides Prologis with premium assets in key U.S. markets and adds more than 500 new clients to its portfolio, further cementing its industry leadership.
Complementary Assets Drive Long-Term Growth
Prologis co-founder, chairman and CEO Hamid R. Moghadam emphasized the transaction's strategic benefits, stating the merger delivers immediate earnings accretion while creating multiple pathways for future profit growth. The deal grants Prologis access to high-quality properties and new clients who can leverage the company's Essentials platform for comprehensive supply chain solutions.
Moghadam noted Duke Realty's assets demonstrate strong physical and geographic complementarity with Prologis's existing portfolio. The CEO highlighted Prologis's proven ability to integrate acquisitions and unlock additional value through its customer-focused innovation platform.
Duke Realty's Premium Portfolio
The acquired assets include:
- 142 million square feet of operational logistics facilities (approximately 480 buildings) across 19 major U.S. markets
- 7 million square feet of properties under construction
- About 17 million square feet of developable land
These strategic holdings enhance Prologis's presence in critical logistics hubs, including Savannah, Georgia - the fourth-largest U.S. container import gateway.
Negotiation Process: From Rejection to Agreement
The acquisition followed months of negotiations after Duke Realty initially rejected Prologis's offer in May 2022. Duke's board maintained the proposal undervalued the company's premium industrial warehouse portfolio and growth potential.
Following revised terms, the companies reached agreement, with Duke Realty chairman and CEO James Connor joining Prologis's board as part of the transaction.
Industry Perspective: Strategic Move in Turbulent Times
Commercial real estate experts have praised the acquisition as strategically sound. Colliers International executive vice president Ward Richmond described the deal as a smart investment in high-quality industrial properties within critical markets, noting few companies possess portfolios as strong as Duke Realty's.
Richmond observed that market conditions including inflation, global conflicts, and supply chain disruptions all point toward the value of owning industrial real estate assets.
Future Outlook: Enhanced Capabilities
With the merger complete, Prologis strengthens its position as the global logistics real estate leader. The company plans to integrate Duke Realty's clients into its platform while expanding service offerings to meet evolving supply chain demands.