Industrial real estate investment trust (REIT) - Prologis Inc. ( PLD ) penned two new lease deals for 452,000 square feet at Prologis Park Kawajima 2 in a Tokyo submarket.
With the penning of these deals with a top Japanese third-party logistics provider and a major wholesaler of food and snack products, the facility that is yet be completed is fully pre-leased. This reflects the strong demand for such logistics facilities of Prologis in Japan.
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.
Moreover, the industrial property market in Japan is showing signs of stability that was held back by the devastation and loss caused by the earthquake and tsunami in early 2012. Particularly, amid an increase in Internet shopping, the demand for warehouses is rising in Japan and Prologis is leveraging on that. Its Japan REIT also began trading earlier this year.
With around 21 million square feet of logistics and distribution space in Japan as of Jun 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 market.
Prologis currently carries a Zacks Rank #3 (Hold). Some better performing REITs include Sovran Self Storage Inc. ( SSS ), having a Zacks Rank #1 (Strong Buy) as well as CubeSmart ( CUBE ) and Highwoods Properties Inc. ( HIW ), both carrying a Zacks Rank #2 (Buy).