(PLD) Prologis Inks Deal with SpeedFC

San Francisco-based industrial real estate investment trust (REIT), Prologis Inc. (PLD), recently penned a new build-to-suit agreement with end-to-end e-Commerce service provider – SpeedFC, a subsidiary of Navarre Corp. (NAVR). The agreement is for a distribution center spanning 770,000 square feet in Etna, Ohio.

The proximity of this distribution center, which will be built at Prologis Park 70 Etna, to the Port Columbus International Airport as well as to major freeways, would help SpeedFC meet the rising demand from customers by offering increased accessibility to the population in the U.S. and Canada.

Notably, there is an increased demand for Class-A facilities resulting from growth in e-Commerce. Firms are seeking consolidation of distribution networks and are settling near areas where majority of the population resides in order to better serve customers and reduce delivery time.

Prologis stands to benefit from this move as it has the capacity to offer modern distribution facilities in strategic infill locations. Such facilities, in turn, help Prologis customers’ like SpeedFC to experience efficiency gains and lower operational costs. As a matter of fact, SpeedFC has been Prologis’ client in the past and this particular deal will extend Prologis’ relationship with SpeedFC to over 1.3 million square feet in 2 U.S. markets.

Prologis is significantly capitalizing on the growing opportunities in build-to-suit development projects across the globe. Additionally, leasing decisions that were earlier postponed due to volatility in the markets are gradually coming off the shelf. This, in turn, is expected to help augment the company’s top line going forward and provide upside potential to its stock price.

Prologis currently holds a Zacks Rank #3 (Hold). Other REITs that are performing well and are worth a look include Ryman Hospitality Properties Inc. (RHP) , Omega Healthcare Investors (OHI), both of which carry a Zacks Rank #1 (Strong Buy).

NAVARRE CORP (NAVR): Free Stock Analysis Report

OMEGA HLTHCARE (OHI): Free Stock Analysis Report

PROLOGIS INC (PLD): Free Stock Analysis Report

RYMAN HOSPITLTY (RHP): Free Stock Analysis Report

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