"Delp Distribution Center remains attractive for our local customer base for its proximity to the Memphis International Airport and its ability to support rail services," Jeremy Giles, senior vice president and Southeast regional director for ProLogis, stated in a release. "In addition, Memphis remains a prime logistics hub for its quick highway access to highly populated areas throughout the Southeast and Midwest."

Daimler now occupies a total of 809,000 square feet owned by ProLogis throughout North America and Europe, according to ProLogis vice president and market officer Alex Vulic. The owner, manager and developer of distribution facilities holds 919,000 square feet in six buildings at Delp Distribution Center, which are now 97% leased.

The Southeast submarket, where the park is located, has a 13% overall vacancy rate with average rental rates at $2.58 per square foot, according to a Cushman & Wakefield third-quarter industrial report. The brokerage reports that "due to an unstable economy and slow market conditions, this year could be one of the worst years on record for absorption." However the Southeast submarket led local year-to-date leasing activity at 4.6 million square feet through the third quarter.

"The Southeast submarket does tend to be the backbone of the Memphis market," Giles tells GlobeSt.com. He says most of ProLogis' 9.2 million square feet throughout the Memphis metropolitan area is within Southeast Memphis or DeSoto County Mississippi, which is considered an extension of the Tennessee submarket. ProLogis' local portfolio is currently 93% leased.