Prologis Inks Deal with SpeedFC - Analyst Blog
March 26 2013 - 7:25AM
Zacks
San Francisco-based industrial real estate investment trust
(REIT), Prologis Inc. (PLD), recently penned a new
build-to-suit agreement with end-to-end e-Commerce service provider
- SpeedFC, a subsidiary of Navarre Corp. (NAVR).
The agreement is for a distribution center spanning 770,000 square
feet in Etna, Ohio.
The proximity of this distribution center, which will be built at
Prologis Park 70 Etna, to the Port Columbus International Airport
as well as to major freeways, would help SpeedFC meet the rising
demand from customers by offering increased accessibility to the
population in the U.S. and Canada.
Notably, there is an increased demand for Class-A facilities
resulting from growth in e-Commerce. Firms are seeking
consolidation of distribution networks and are settling near areas
where majority of the population resides in order to better serve
customers and reduce delivery time.
Prologis stands to benefit from this move as it has the capacity to
offer modern distribution facilities in strategic infill locations.
Such facilities, in turn, help Prologis customers’ like SpeedFC to
experience efficiency gains and lower operational costs. As a
matter of fact, SpeedFC has been Prologis’ client in the past and
this particular deal will extend Prologis' relationship with
SpeedFC to over 1.3 million square feet in 2 U.S. markets.
Prologis is significantly capitalizing on the growing opportunities
in build-to-suit development projects across the globe.
Additionally, leasing decisions that were earlier postponed due to
volatility in the markets are gradually coming off the shelf. This,
in turn, is expected to help augment the company’s top line going
forward and provide upside potential to its stock price.
Prologis currently holds a Zacks Rank #3 (Hold). Other REITs that
are performing well and are worth a look include Ryman
Hospitality Properties Inc. (RHP) , Omega
Healthcare Investors (OHI), both of which carry a Zacks
Rank #1 (Strong Buy).
NAVARRE CORP (NAVR): Free Stock Analysis Report
OMEGA HLTHCARE (OHI): Free Stock Analysis Report
PROLOGIS INC (PLD): Free Stock Analysis Report
RYMAN HOSPITLTY (RHP): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Ryman Hospitality Proper... (NYSE:RHP)
Historical Stock Chart
From Jun 2024 to Jul 2024
Ryman Hospitality Proper... (NYSE:RHP)
Historical Stock Chart
From Jul 2023 to Jul 2024