), a leading industrial real estate investment trust (REIT), has
recently signed four new lease agreements spanning about 1.1
million square feet in Japan. The deals were penned with existing
clients for an undisclosed amount.
Prologis leased 349,300 square feet of industrial space to a
local unnamed third-party logistics provider. The lessee will
occupy a build-to-suit facility at Prologis Park Kobe within the
Osaka market, construction of which is scheduled to commence
The company leased 230,000 square feet at Prologis Park Osaka 4
building to Hitachi Transport System, a leading third-party
logistics provider. The facility spanning over 1.1 million square
feet was completed in May 2012.
At the same time, Prologis leased 543,000 square feet in two
separate transactions with another major third-party logistics
provider. The first of these was a lease agreement for 224,000
square feet at Prologis Park Osaka 4 building. The other
transaction included a lease agreement for 319,000 square feet at
Prologis Park Zama 2 facility in the Tokyo market.
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 chain efficiencies.
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 21 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. We
also have a Neutral recommendation and a Zacks #3 Rank for
Winthrop Realty Trust
), one of the peers of Prologis.
WINTHROP REALTY (FUR): Free Stock Analysis
PROLOGIS INC (PLD): Free Stock Analysis
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