SAN FRANCISCO-Locally based Prologis Inc. has signed two build-to-suit agreements with BMW of North America LLC totaling 609,000 square feet. The first development—totaling 326,500 square feet—will be located in Redlands, CA, and the second facility will be located in the Dallas market at Prologis Park 20/35.
The first facility will be located at Prologis Redlands Distribution Center 11. The LEED Silver certified facility will provide an expansion option for an additional 96,000 square feet, increasing the prospective logistics space to 422,500 square feet.
The second facility will be LEED Silver certified and will total 282,000 square feet. In addition, it will have expansion capabilities to 370,000 square feet. At full build-out, the park will include more than 3.1 million square feet of logistics space.
As GlobeSt.com previously reported, New Jersey-based BMW have been looking at sites, at least in the North Texas market, for several months.
In addition to the two build-to-suit agreements, Prologis has agreed to acquire a 204,000 square foot distribution facility from BMW of North America in Ontario, CA. The building is in a highly-desirable part of the Inland Empire West submarket and Prologis expects strong customer interest in the property, according to a prepared statement.
“These new agreements demonstrate the power of our strong global customer relationships and increase BMW’s portfolio with Prologis to more than 2.2 million square feet in five markets, all of which have been build-to-suits,” says Richard Strader, senior vice president, global customer solutions, Prologis, in a prepared statement.
According to a recent industrial market report for the Inland Empire from Lee & Associates, the fourth quarter showed stable activity and absorption figures. Both activity and gross absorption were strong in the fourth quarter exhibiting stabilized market trends. Absorption in 2012 of just over 12 million square feet surpassed the figures seen in 2011, a trend that is expected to continue throughout 2013.
According to the firm, gross activity in the fourth quarter was almost 4.7 million square feet, with investment purchases and lease renewals accounting for 27% of the total. Investors will still be active in 2013 and existing tenants will likely renew existing leases due to the lack of quality product available in the marketplace, says the firm.
Prologis recently announced fourth quarter results, showing a record 40.5 million square feet of leasing in Q4. According to Hamid Moghadam, chairman and CEO of the firm, “This marks the first full year as a combined company and Prologis delivered very strong results. We are ahead of schedule on our 10 Quarter Plan and we’ve built a solid foundation upon which we will continue to grow the company.”
GlobeSt.com also recently chatted with Kim Snyder, president of the Southwest region of Prologis on two spec projects the firm is working on and more thoughts on 2013. Read more by clicking here.