In 1983, if you’d have told me that in four decades, I’d be leading the 68th largest company in the S&P 500 (as of April 2023), I don’t think I would have believed you. Back then, I had recently finished grad school; the economy was tough with an over 10% unemployment rate and I was having a hard time finding a job. What I’ve learned throughout my career is that in the darkest days, the biggest opportunities are there – you just have to open your eyes to see them. Those headwinds, and the decisions we made, put the company on a long-term path to success. There have been many important milestones throughout Prologis’ history, but three pivotal moments stand out as shaping the company we are today.
#1 - The Founding
In 1983, Doug Abbey, T. Robert Burke and I came together and founded AMB. Our entrepreneurial journey has been hard, long and risky, with many setbacks along the way. Yet it has been more fulfilling than anything we could have imagined.
Today, at Prologis, courage is one of our core values. As I tell our team, we live in a constantly changing world and, if we are going to meet and exceed our ambitions, we must have the courage to take calculated risks.
#2 - The Pivot
The next crucial moments in the company’s history were our initial public offering in 1997 followed by our pivot to ecommerce in 1999. We consolidated our fund portfolios, with our investors agreeing to sell into the future publicly traded vehicle. The shift from only private to now public investors was followed by another calculated risk - the move to zero in on industrial.
In 1999, we exited retail and doubled down on our industrial properties in top-tier markets, which ultimately gave us an early seat in the world of ecommerce. The backbone of our strategy was to build the portfolio in large consumer markets around high-speed distribution, ports and airports. These changes required looking around corners, grit and good fortune. It was not a sure thing, but that’s the exciting and scary part of being an entrepreneur.
The shift solidified the foundation for our long-term success as an industry leader. It was also our first case of really being “ahead of what’s next.” The move set us up for growth like we couldn’t have imagined and reinforced a culture of innovation that has become part of our DNA. Seventeen years later, we started Prologis Ventures to spur innovative thinking and fuse our mother business with ongoing industry innovation by investing in high-impact companies that are pioneering the future of logistics. Today, Ventures has invested more than $180M in nearly 40 companies since 2016, including to support ESG-related solutions.
#3 - Going Global
The third defining moment for our company was when we began our global expansion in 2002. We focused on trade-centric locations in Mexico, Europe and Asia. I remember our first offices in Tokyo, Mexico City and Amsterdam, it was a big change embracing a global mindset as a team, but it elevated our worldview and thinking at a whole new scale. Establishing our international presence allowed us to weather the global financial crisis. Our properties were occupied, and our cash flow was fine, but the perception in the market was subpar. I have always believed in building a resilient business and closely watching our balance sheet. This was true in the early years and remains a core tenant.
Since our global expansion and the 2011 merger of AMB and ProLogis that infused us with great talent (many of who are still with the company today) and a quality portfolio, Prologis has grown to 1.2 billion square feet (113 million square meters) with properties and development projects in 19 countries, serving a diverse base of approximately 6,600 customers. We sit at the epicenter of the supply chain with 2.8% of the world’s GDP passing through a Prologis warehouse. And we’re still growing.
All of this would not be possible without people – the 40 years of Prologis colleagues, customers and community partners. Since founding this company, culture has been crucial. It starts with our core values that unite us as colleagues – IMPACT – integrity, mentorship, passion, accountability, courage, teamwork. This is why we invest in our talent, form deep relationships with our customers and care for our communities.
As we look towards the future, it's impossible to predict exactly what lies ahead. But one thing we can be certain of is the immense potential within our industry. A potential that we will continue to reach. We are committed to pushing boundaries, which we’re doing right now in sustainability – making industry-leading changes in sustainable industrial construction and staying ahead of the curve in automated logistics technology, solar power, and mobility.
Here’s to the next 40!
