Prologis: new urban logistics hub within Milan’s Food Market

Prologis has announced the development of Milan DC5 (Logistics Platform L3), a new urban logistics property located in Milan, within the Food Market.

In recent years, the area has undergone a major redevelopment project: one of the few opportunities currently available for developing logistics space in central Milan and a strategic hub for the distribution of fresh food products in the city and beyond.

The project’s development process

The project was awarded through a public tender and involves Prologis developing a new property on land granted under a surface right by Sogemi, a company partly owned by the Municipality of Milan, which manages the Food Market and Milan’s neighbourhood markets. The initiative forms part of a shared programme to modernise and strengthen the city’s agri-food infrastructure, making it increasingly efficient and suited to the needs of contemporary distribution.

Building on the excellent leasing results already achieved by Milan DC3 (Logistics L2), Milan DC5 (Logistics L3) forms part of a strategy of continuity and consolidation for Prologis’ presence in this urban district. This new development has also been created to meet solid and consistent demand from food-sector operators, last-mile distribution players and small and medium-sized enterprises. Milan DC3 (Logistics 2) had already marked an important stage in the transformation of this strategic area, through the regeneration of a previously developed urban site within the market.

The features

Milan DC5 (Logistics 3) represents one of the very few opportunities for logistics development in central Milan, in a market characterised by extremely limited space availability, strong demand linked to last-mile distribution and a marked shortage of land. The property, intended for handling fresh food products, will be temperature-controlled. Its location is particularly strategic: it is approximately 6 km from the city centre, 2 km from Linate Airport and 1 km from the ring road, thereby ensuring direct access to the urban fabric and fast, efficient distribution.

With a surface area of approximately 11.800 sq m, Milan DC5 (Logistics 3) will be developed as a multi-tenant property, divided into six units, with a cross-dock configuration and a flexible layout designed to meet the specific needs of food-sector operators, urban distribution activities and small and medium-sized enterprises. From an environmental perspective, the building will incorporate high energy-efficiency systems and a roof prepared for the installation of photovoltaic systems, fully consistent with Prologis’ ESG commitments and with a development vision focused on durability, efficiency and the ability to adapt over time to changing operational requirements.

Last-mile distribution

The facility is designed to support urban logistics and last-mile distribution, with features that clearly distinguish it from traditional logistics assets. Its location within Milan’s agri-food market ecosystem provides direct access to one of the main food distribution hubs associated with Made in Italy, further strengthening the initiative’s strategic value. Its integration within the market is also particularly significant, as it makes the wholesalers and distributors already operating there natural counterparts for the spaces developed by Prologis, given the full alignment between the context, the property’s layout and their operational needs.

The project also contributes to the regeneration of an existing urban site, confirming a development approach based on reactivating already urbanised areas rather than consuming new land. This is an increasingly central direction in major European cities, where the scarcity of available areas makes redevelopment one of the few viable ways to create modern, efficient logistics infrastructure integrated into the urban context.

Comments

“Milan DC5 (Logistics L3) clearly reflects the evolution of logistics, which is increasingly an essential component of urban infrastructure. Developing in such a central location, within Italy’s largest wholesale agri-food market, enables us to provide a unique platform that combines efficiency, proximity and flexibility in support of food distribution, in one of Europe’s most complex and constrained markets, characterised by high barriers to entry,” said Sabine Hutter, vice president capital deployment at Prologis Italia.

“The L3 logistics platform represents a further step in the infrastructure modernisation and urban regeneration programme promoted by Sogemi within the Foody district. It is a new-generation urban logistics hub that strengthens the strategic role of Milan’s Food Market as an advanced platform serving the agri-food supply chain, urban distribution and the city’s logistics efficiency,” said Lorenzo Barbagli, director of real estate infrastructure at Sogemi.

Construction work on Milan DC5 (Logistics L3) has already begun, and delivery of the property is expected by the fourth quarter of 2026.

This article was translated from the original Italian version with the assistance of artificial intelligence. In case of discrepancies, please refer to the original Italian version.