AMB’s Asia Portfolio Stabilizes
- May 03, 2011
May 2, 2011
By Barbra Murray, Contributing Editor
For companies seeking premier industrial space for lease in Asia, AMB Property Corp. is nearly fresh out for the time being. With the recent closing of four leases totaling 420,900 square feet at AMB Sendai-Tagajo Distribution Center in Sendai, Japan, the company’s entire legacy development portfolio in Asia is now stabilized.
Michael Evans, managing director, Asia, for AMB, noted that Japanese companies are seeking Class A logistics space, leading to more inquiries and leasing velocity. AMB’s Asia portfolio encompasses a total of approximately 19.2 million square feet of operating and development properties in China, Japan, Korea and Singapore.
The Asian economies are leading the current global cycle and growth in the countries’ manufacturing sector continues, which will combine to spur an even greater rise in demand for industrial properties in the region in 2011, as per a report by commercial real estate services firm Cushman & Wakefield Inc.
With its Asia assets substantially leased, AMB is in the process of bringing additional logistics space to the market to answer the increasingly loud call for premier accommodations. In March, the global industrial real estate developer and operator announced that it had formed a new joint venture, AMB China Logistics Venture I, with HIP China Logistics Investments Ltd., for the purpose of investing as much as $1.1 billion in logistics properties in key markets across China. As of the close of 2010, according to a report by commercial real estate services company CB Richard Ellis Inc., only 62.4 million square feet of China’s 5.9 billion square feet of industrial space fall into the category of modern logistics facilities.