ProLogis (PLD), a leading global provider of distribution facilities, recently signed a new lease agreement spanning about 105,000 square feet of space in Chicago. The deal was signed with an unnamed third-party logistics provider for an undisclosed amount. The continued leasing activities in the region show signs of stability in the industrial property market in the U.S. after a prolonged recession that pushed back the sector.
The lessee will occupy the space at ProLogis Park O’Hare Building One, which is located in close proximity to O’Hare International Airport. With the deal, the distribution facility is currently fully leased. The leased property has all the state-of-the-art facilities, and includes various sustainable design and energy-efficient construction techniques. Consequently, the leased site offers a huge growth potential to the lessee.
With improving property values and growing institutional demand for quality properties, ProLogis has witnessed a growing customer interest in new build-to-suit development projects across the globe. In addition, leasing decisions that were earlier postponed due to volatility in the markets are gradually coming off the shelf.
ProLogis owns and manages interests in over 2,500 distribution facilities, service offices and properties spanning 475 million square feet of space (including properties under development), of which approximately 25.2 million square feet are located in Chicago
The company leases its industrial facilities to over 4,400 customers, which mostly include manufacturers, retailers, transportation companies, third-party logistics providers and other enterprises with large-scale distribution needs. We maintain our Neutral rating on ProLogis, which presently has a Zacks #3 Rank that indicates a short-term ‘Hold’ recommendation.
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