Industrial real estate investment trust (REIT) -
) disclosed that it will develop three inventory logistics
facilities in Japan. These facilities will span 3.2 million square
feet of space and offer its clientele central distribution to Tokyo
and the neighboring metropolitan area.
Among the 3 facilities, one will be at Prologis Park Chiba New Town
and span 1.4 million square feet. It will be positioned alongside
the National Highway No. 464 and offer good accessibility to the
Narita International Airport.
The other facility will be at Prologis Park Yoshimi near the Ken-O
Expressway and total 1.1 million square feet of space. The third
facility will include 695,000 square feet of space at Prologis Park
Narashino 5. Notably, Narashino serves as a distribution hub for
As a matter of fact, there is an increasing demand for Class-A
facilities in Japan with rise in e-Commerce application and supply
chain consolidation. Vacancy rates are low and amid a constrained
supply of new facilities, net effective rents are growing. As such
Prologis is capitalizing on this trend and securing land parcels.
The company is leveraging on its development expertise and aiming
at creating premium facilities in strategic locations in the
With around 22.9 million square feet of logistics and distribution
space in Japan as of Mar 31, 2014, Prologis is one of the notable
providers of industrial real estate in Asia. This depicts the
company's decent foothold in the region's industrial real estate
market. Last month, Prologis also came up with an earnings surprise
of 2.38% for first-quarter 2014.
Prologis currently carries a Zacks Rank #3 (Hold). Investors
interested in the REIT industry may also consider stocks like
The GEO Group, Inc.
Rexford Industrial Realty, Inc.
Terreno Realty Corp.
). All these stocks carry a Zacks Rank #1 (Strong Buy).
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