), a leading industrial real estate investment trust (REIT), has
recently signed two new lease agreements spanning about 227,979
square feet in Osaka, Japan. The deal was penned with two existing
clients for an undisclosed amount. The lessees included ASKUL - a
premier online retailer for office supplies, and an unnamed
third-party logistics provider.
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Both the customers would occupy space at Prologis Park Osaka 4
facility unveiled in May. The five-story state-of-the-art facility
spanning over 1.1 million square feet of industrial space, has two
spiral ramps making each floor easily accessible to vehicles.
Earlier, in July 2012, Prologis had signed five new lease
agreements totaling 558,000 square feet of its development
portfolio in Japan. The deal was forged with unnamed customers for
an undisclosed amount.
Continued leasing activities in the region show signs of stability
in the industrial property market in Japan that was held back by
the devastation and loss caused by the earthquake and tsunami.
Furthermore, it signifies the inherent high quality of the
distribution facilities that make them attractive investment
propositions for third-party companies to enhance their supply
With improving property values and growing institutional demand for
quality properties, Prologis has also witnessed a growing customer
interest in new 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. As of June 30, 2012, Prologis had approximately 22 million
square feet of logistics and distribution space in Japan.
Prologis acquires, develops, operates and manages industrial real
estate space in North America, Asia and Europe. The industrial
distribution warehouse space of the company is located in some of
the busiest distribution markets across the globe. The properties
of the company are typically located in large, supply-constrained
infill markets in close proximity to airports, seaports, and ground
transportation facilities, all of which enable rapid distribution
of customers' products. This has enabled the company to gain a
significant pricing advantage over its competitors.
We currently have a Neutral recommendation and a Zacks #3 Rank for
Prologis, which translates into a short-term Hold rating. On the
other hand, we have an Underperform recommendation and a Zacks #5
Rank (short-term Strong Sell rating) for
Winthrop Realty Trust
), one of the peers of Prologis.