), a leading industrial real estate investment trust (REIT), has
recently signed two new lease agreements spanning about 740,000
square feet of development space in New Jersey. The deals were
penned with unnamed companies for an undisclosed amount.
WINTHROP REALTY (FUR): Free Stock Analysis
PROLOGIS INC (PLD): Free Stock Analysis
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In concurrence with the agreements, Prologis would lease 395,000
square feet to a wholesale packaging distributor and about
345,000 square feet to an e-commerce food retailer. At the same
time, the company would develop an additional 140,000 square feet
of speculative space at the leased property, which involves a
former waste disposal site.
Prologis had earlier acquired the 50-acre site in 2008. Since
then, the company has diligently worked with the U.S.
Environmental Protection Agency and the New Jersey Department of
Environmental Protection to implement a comprehensive development
plan. This envisages a permanent capping and closure of the
landfill and returning the site to productive use. On completion,
the property would feature a LEED-certified, 880,000 square-foot
logistics facility, while the reaming space would be returned to
Besides its environment-friendly features, the leased property
titled Pulaski Distribution Center is strategically located in
close proximity to the Port of New York/ New Jersey and in the
vicinity of the New York City. Consequently, the development
project offers significant locational advantage to the lessees,
and brings on board a Class-A facility in one of the most dynamic
and land-constrained infill areas in the U.S.
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 September 30, 2012, Prologis had
approximately 22 million square feet of logistics and
distribution space within the New York/New Jersey market.
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. We
also have a Neutral recommendation and a Zacks #3 Rank for
Winthrop Realty Trust
), one of the peers of Prologis.