STOCKHOLM-Schenker Logistics has inked a 269,000-sf lease for a new distribution facility. ProLogis will develop the industrial area of Vastra Arlandastad in city of Sigtuna, near the Stockholm-Arlanda International Airport.
Schenker, which will occupy 100% of the build-to-suit building, is consolidating its operations in Stockholm and will use the new facility as its primary distribution center for the Stockholm region. The building, which is scheduled to begin construction in early 2008, is expandable up to 366,000 sf.
Asgeir Torfason, market officer for the Nordic Region for ProLogis, declined to provide development costs or asking rates for the facility, but did tell GlobeSt.com that the market average for such as facility is 500 Swedish kronor or $79 per square meters. Land for the new park, to be called ProLogis Park Stockholm Arlanda, was acquired earlier this month.
ProLogis established an on-the-ground presence in Sweden in 2005. It now operates seven buildings in Sweden, two of which are at the maximum height and the others at heights that are fairly close.
Schenker's lease, Torfason adds--or rather the company's motivations behind it--is emblematic of much of the business that ProLogis is seeing in this market.
Demand for larger and new industrial space is growing as shifting Pan-European distribution patterns are placing Sweden in the role of regional distribution hub. This has resulted in greater demand for modern facilities both on a build-to-suit and inventory basis, he says.
Also, there is a growing demand for facilities built to the latest standards. ProLogis' operations here are drawing in tenants in some part because of its buildings' clear height, many of which are 10 meters high and two of which are 11.7 meters high--the maximum allowed for a single sprinkler system. The latter, in fact, is somewhat rare for Sweden, Torfason says. But tenants are clamoring for such space, he says, because it allows them to consolidate in one large modern facility, thereby streamlining their logistics and warehouse operations. The next month, he adds, the company will be announcing more deals similar to the Schenker lease.
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