Ushering in good news for its Denver platform, industrial real estate investment trust (“REIT”) – Prologis Inc. (PLD) – disclosed the pre-leasing of 261,000 square feet of area at a development in the region. With this lease, the company will achieve full occupancy for its 1.2 million square foot master-planned park.
This pre-lease deal reflects the solid demand enjoyed by the company's properties. In fact, it represents the second notable pre-lease deal under a year at this site. This 261,000 square feet space would be occupied by an industrial distributor, HD Supply Facilities Maintenance Ltd. at Prologis Stapleton Business Center North. Importantly, this deal increases the company's association with HD Supply to 7 U.S. markets.
Amid a rising demand for space, market occupancy in the Denver market is escalating, currently scaling a 15-year high of 95%. To leverage this favorable trend, Prologis is building Class-A logistic facilities. In the Denver area, the company already boasts the ownership and operation of 31 buildings spanning over 5.5 million square feet.
With demand for Class-A facilities rising in many parts of the world, this industrial REIT, with its solid capacity, is well leveraging this improving trend. Most recently, Prologis revealed a build-to-suit deal with Sweden's logistics company, Strålfors, for a space of 280,000 square feet. This space would be used by Strålfors as a distribution center for e-commerce enterprise CDON Group.
Prologis currently carries a Zacks Rank #3 (Hold). Investors interested in the REIT industry may consider better-ranked stocks like Cousins Properties Incorporated (CUZ), DCT Industrial Trust Inc. (DCT) and Duke Realty Corp. (DRE). All these stocks carry a Zacks Rank #2 (Buy).
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