Tuesday, November 24, 2009

ProLogis To Develop 667K In Ontario

In what is the rarest of development deals, ProLogis will be constructing a 667,000 SF industrial warehouse in Ontario. This will be the first development deal in around 6 months.


I thought the development days were behind us, since the amount of available inventory is such that sales prices have dropped below replacement cost in many instances. This means that it would be cheaper to buy a building than to construct one.

Except for the really, really large ones. Currently in the West Inland Empire there are 3 available empty buildings above 600,000 SF, all asking around $0.33 NNN.

No word yet on if this is a consolidation deal, but Home Depot has a 650,000 SF lease rolling at then end of 2010 in Industry, and 480,000 SF rolling at the end of 2011 in Ontario.

Originally, the building was planned as a 1 Million SF building, but now that 667K will be constructed, what is going to happen with the remaining 330k?

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