"We're very happy with earnings for quarter," Rakowich tellsGlobeSt.com. "We had very strong perfomance in a weak economy. Andwe had ancicipated our earnings would be down a bit."

He notes the company will be investing $1 billion to $1.5billion in China over the next three to four years, and and equalamount in Japan during that time period. Conventional economicwisdom has it that China will grow in future decades, but Japan issomething less expected. The depressed economy in Japan plans tothe strength of ProLogis, he says.

"To a large degree that is a plus for us," he tells GlobeSt.com."One of the reasons their economy is so bad, because they have aninefficient distribution network. It costs a lot more to move goodsin Japan than it does in the U.S. We see the new for new modern,efficient warehouses in Japan that have not existed before."