San Francisco-based industrial real estate investment trust
), recently penned a new build-to-suit agreement with end-to-end
e-Commerce service provider - SpeedFC, a subsidiary of
). The agreement is for a distribution center spanning 770,000
square feet in Etna, Ohio.
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The proximity of this distribution center, which will be built at
Prologis Park 70 Etna, to the Port Columbus International Airport
as well as to major freeways, would help SpeedFC meet the rising
demand from customers by offering increased accessibility to the
population in the U.S. and Canada.
Notably, there is an increased demand for Class-A facilities
resulting from growth in e-Commerce. Firms are seeking
consolidation of distribution networks and are settling near
areas where majority of the population resides in order to better
serve customers and reduce delivery time.
Prologis stands to benefit from this move as it has the capacity
to offer modern distribution facilities in strategic infill
locations. Such facilities, in turn, help Prologis customers'
like SpeedFC to experience efficiency gains and lower operational
costs. As a matter of fact, SpeedFC has been Prologis' client in
the past and this particular deal will extend Prologis'
relationship with SpeedFC to over 1.3 million square feet in 2
Prologis is significantly capitalizing on the growing
opportunities in build-to-suit development projects across the
globe. Additionally, leasing decisions that were earlier
postponed due to volatility in the markets are gradually coming
off the shelf. This, in turn, is expected to help augment the
company's top line going forward and provide upside potential to
its stock price.
Prologis currently holds a Zacks Rank #3 (Hold). Other REITs that
are performing well and are worth a look include
Ryman Hospitality Properties Inc.
Omega Healthcare Investors
), both of which carry a Zacks Rank #1 (Strong Buy).