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Prologis Secures 8 Build-to-Suit Development Projects

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San Francisco-based industrial real estate investment trust (REIT) - Prologis, Inc.PLD - disclosed that it has been given eight build-to-suit development projects, aggregating over 2.1 million square feet of space. Development of these projects commenced between July and Oct 2015.

These projects involve customers from diverse industries like retail, ecommerce, automotive, printing and imaging and food beverage. The list includes reputed companies like AO, BMW, Conns Inc. CONN , IIMAK, Media Concept, Menlo Worldwide Logistics, Skechers U.S.A., Inc. SKX and The J. M. Smucker Company SJM .

Amid improving operating fundamentals in the industrial real estate markets, Prologis has been actively capitalizing on growth opportunities. The company has a solid land bank and is effectively using it to deliver modern distribution space in the major logistics markets.

Importantly, between July and October 2015, Prologis completed eight additional projects, encompassing 3.4 million square feet of build-to-suit space. Year-to-date, the company has begun development of 20 build-to-suit projects, representing 7.4 million square feet and involving around $518 million in total investment. Yet another 21 build-to-suit projects, aggregating 7.4 million square feet and comprising over $504 million in total investment, were completed during this period.

The industrial real estate market has been experiencing solid growth, thanks to the rising Internet retailing as well as supply-chain consolidation. This, in turn, is generating greater demand for logistics infrastructure and efficient distribution networks, giving Prologis ample scope to ride on the growth curve. Yet, rising competition and interest rate issues are concerns for the company.

Prologis currently has a Zacks Rank #3 (Hold).

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PROLOGIS INC (PLD): Free Stock Analysis Report

SKECHERS USA-A (SKX): Free Stock Analysis Report

SMUCKER JM (SJM): Free Stock Analysis Report

CONNS INC (CONN): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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