Industrial real estate investment trust (REIT) -
) penned a build-to-suit deal in Japan for a 440,000 square foot
distribution center. The deal was etched with a national retailer
- Tohoku CO-OP - for an undisclosed amount. The facility will
come up at Prologis Park Tomiya 3.
Amid a larger customer base, rise in e-Commerce application and
supply chain consolidation, there is an increasing demand for
Class-A facilities and Prologis stands to benefit as it has the
capacity to offer modern distribution facilities in strategic
infill locations. This new facility of Prologis is expected to
benefit owing to its proximity to the Tohoku expressway with easy
access to Sendai's central business district.
Notably, the industrial property market in Japan that suffered a
setback owing to the devastation and loss caused by the
earthquake and tsunami in early 2012 is showing signs of
improvement. Particularly, amid an increase in Internet shopping
and lack of adequate supply, the demand for Class-A logistics
development is expected to continue to rise in Japan and Prologis
is leveraging on this.
With around 23 million square feet of logistics and distribution
space in Japan as of Sep 30, 2013, Prologis is one of the top
providers of industrial real estate in Asia. This depicts the
company's solid foothold in the region's industrial real estate
Prologis currently carries a Zacks Rank #3 (Hold). Investors
interested in the REIT industry may also consider stocks like
Getty Realty Corp.
National Health Investors Inc.
Pebblebrook Hotel Trust
). All these stocks carry a Zacks Rank #1 (Strong Buy).
GETTY REALTY CP (GTY): Free Stock Analysis
NATL HEALTH INV (NHI): Free Stock Analysis
PEBBLEBROOK HTL (PEB): Free Stock Analysis
PROLOGIS INC (PLD): Free Stock Analysis
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