ProLogis Continues Leasing Spree with 1MSF in Louisville
- Feb 04, 2009
A grim economy and internal financial challenges have not prevented ProLogis from reeling in the tenants. The behemoth distribution facilities provider recently wrapped up just over 1 million square feet in lease agreements in and around Louisville, Ky. At the 1.2 million-square-foot ProLogis Park 65 in Brooks, ProLogis signed a pharmaceutical services provider to 273,000 square feet of new distribution space, and shaved off an additional 273,000 square feet with a lease by a third-party logistics provider that specializes in the pharmaceutical industry. A top industrial controls manufacturer inked a deal for 300,000 square feet at the 420,000-square-foot Riverport Distribution Center Building III within Louisville’s Jefferson Riverport International master planned industrial compound. And APL Logistics expanded its presence at ProLogis Park Cedar Grove (pictured) in Shepherdsville, signing on for an additional 167,000 square feet for a total occupancy of 382,800 square feet. With the four new lease commitments, ProLogis’ Class A Louisville portfolio, which encompasses an aggregate 5.5 million square feet in 17 buildings, is 97 percent occupied. The nearly full tenant roster at the company’s properties belies the actual state of the Louisville industrial market, where the vacancy rate is 15.13 percent, according to a fourth quarter report by real estate services firm Colliers International. The multiple Louisville transactions come as little surprise, given the flurry of activity ProLogis has announced since the resignation of its former CEO and the revelation of a plan to de-leverage its balance sheet in November. In January alone, the deals included leases totaling nearly 900,000 square feet in Southern California and Reno, Nev., and approximately 1.4 million at various international locations. Despite seeing its stock value plummet in recent months, ProLogis continues to hold the title of the largest distribution facilities owner, manager and developer in the world, with a portfolio of properties totaling 548 million square feet in North America, Europe and Asia.