Prologis Inks Deal with Subaru for 715 KSF near Indy
- Apr 11, 2013
Prologis Inc., of San Francisco, has signed a build-to-suit agreement with Subaru of America for a 715,000-square-foot distribution center in the Indianapolis area, the developer announced Wednesday.
The state-of-the-art, cross-dock facility will be built at Prologis Park Lebanon, near major freeways and the Indianapolis International Airport, and will serve as a regional parts distribution center. The project’s price was not disclosed.
“The record low supply of large industrial facilities continues to drive build-to-suit solutions in many markets around the country, including Indianapolis,” Jim McGill, Prologis senior vice president, said in a release. “With occupancies rising for the past two years, Indianapolis remains a compelling regional market.”
“Subaru has been setting sales records for the past five years, and we are structuring our operations to reflect that,” Gary Palanjian, Subaru of America vice president of parts and service, said in the same release. “This new facility allows us to better serve our retailers, as well as support our growing operations at our manufacturing plant in Lafayette, Ind.”
Prologis Park Lebanon is a 56-acre parcel that Prologis bought in 2003, McGill told Commercial Property Executive. Despite its being designated as a park, he added, the Subaru of America distribution center will be the sole development there.
McGill added that at least in the central region (Texas up through the Midwest), the shortage of available distribution facilities 500,000 square feet and larger is among the factors driving the BTS market. He added that a 145,000-square-foot building on which Prologis broke ground in September 2011 was the company’s first spec building since the recession.
With demand softening recently among larger users in markets like Chicago, Dallas–Fort Worth and Indianapolis, McGill said, demand is shifting to older properties and mid-market customers. Still, he said, absorption numbers are looking good in almost all of the region’s major markets.
Prologis has seen a spate of sizable BTS deals in recent months. Though McGill believes that the industrial market, like the overall economy, is on the way back up, he characterizes this flurry of activity as a “blip.”
Just so far this year, Prologis has signed four major BTS deals.
* On March 25, it announced that it would build a 770,000-square-foot distribution center in Pataskala, Ohio, near I-70 just east of Columbus. The client is SpeedFC, a provider of e-commerce services.
* On Feb. 13, Prologis signed two BTS agreements, totaling 609,000 square feet, with BMW of North America. One building, of 326,500 square feet, will be built at Prologis Redlands Distribution Center 11, in California’s Inland Empire submarket. The second, at Prologis Park 20/35 in the Dallas market, will be 282,000 square feet initially, with expansion capabilities to 370,000 square feet.
* And on Jan. 22, Prologis nailed down an agreement with Amazon.com for a more than 1 million-square-foot fulfillment center at nearly 90 acres at Prologis Park Tracy Phase II, in Tracy, Calif.