Why Preleasing Matters
A first-round question for office, industrial and mixed-use development.
Why does preleasing matter in a development project?
4 questions reported in Prologis interviews, organised by the group that asks them. Every question carries a model answer and graded feedback on your own attempt.
Questions
Easy · Medium
Hard
Model builds
Built in the spreadsheet grid
Development spreads, cost overruns, lease-up risk and construction draws. 2 questions
A first-round question for office, industrial and mixed-use development.
Why does preleasing matter in a development project?
A judgement question on derisking a project before completion.
Compare a forward sale of a development with building spec and selling after stabilisation.
Cap rates, NOI, going-in versus exit yield and levered returns. 2 questions
Tests how an acquisitions analyst directs limited diligence time before a bid deadline.
A seller gives you three weeks before a best-and-final bid on an industrial property. How would you prioritise diligence, and what findings could change your price immediately?
Sector selection matters more than asset selection in real estate, interviewers probe the reasoning.
Compare multifamily, industrial, office and retail as investments. Why do their cap rates differ, and what drives each?
Write your answer, get it graded on technical accuracy, completeness and communication, and see exactly which mechanic you missed.
Company tags reflect where a question type is commonly reported in interviews. They are not sourced from, endorsed by, or affiliated with Prologis.