Prologis Research: United States Industrial Market Signals Strength, Expansion "The Shape of the U.S. Industrial Recovery" Report Indicates Pent up Demand, Rent Growth as Key Drivers
SAN FRANCISCO, March 21, 2013 /PRNewswire/ -- Prologis, Inc. (NYSE: PLD), the leading global owner, operator and developer of industrial real estate, today published an in-depth analysis of the United States industrial real estate market in a paper titled "The Shape of the U.S. Industrial Recovery."
In the report, the company's research team points to a strengthening of the industrial market with the recovery transitioning into expansion. They believe this is driven by three key factors:
- Effective rents expected to rise 25% over next four years;
- Pent up demand: Exhibited by strong net absorption in the fourth quarter and high readings from Prologis' proprietary Industrial Business Index survey of customer activity levels; and
- Broadening leasing velocity: Market tightness is supporting rent growth in more asset types, in more markets and in more locations in those markets
"The U.S. industrial cycle is clearly building on positive momentum and showing signs of expansion," said Chris Caton, vice president and head, Prologis Research. "New construction starts remain low, demand is increasing, and the housing market and e-commerce are playing an increasingly larger role. We expect a broader uplift in the U.S. industrial property markets to occur for a period of time, and long-term outperformance particularly in infill locations in U.S. global markets."
The complete report is available online only at www.prologisresearch.com.
Prologis Research monitors, analyzes and reports on key trends and dynamics in both real estate and supply chain management to provide customers, investors and the general public with insight from a global and large-scale perspective.
Prologis, Inc. is the leading owner, operator and developer of industrial real estate, focused on global and regional markets across the Americas, Europe and Asia. As of Dec. 31, 2012, Prologis owned or had investments in, on a consolidated basis or through unconsolidated joint ventures, properties and development projects expected to total approximately 554 million square feet (51.5 million square meters) in 21 countries. The company leases modern distribution facilities to more than 4,500 customers, including manufacturers, retailers, transportation companies, third-party logistics providers and other enterprises.
The statements in this release that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on current expectations, estimates and projections about the industry and markets in which Prologis operates, management's beliefs and assumptions made by management. Such statements involve uncertainties that could significantly impact Prologis' financial results. Words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," variations of such words and similar expressions are intended to identify such forward-looking statements, which generally are not historical in nature. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future — including statements relating to rent and occupancy growth, development activity and changes in sales or contribution volume of properties, disposition activity, general conditions in the geographic areas where we operate, our debt and financial position, our ability to form new co-investment ventures and the availability of capital in existing or new co-investment ventures — are forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Although we believe the expectations reflected in any forward-looking statements are based on reasonable assumptions, we can give no assurance that our expectations will be attained and therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. Some of the factors that may affect outcomes and results include, but are not limited to: (i) national, international, regional and local economic climates, (ii) changes in financial markets, interest rates and foreign currency exchange rates, (iii) increased or unanticipated competition for our properties, (iv) risks associated with acquisitions, dispositions and development of properties, (v) maintenance of real estate investment trust ("REIT") status and tax structuring, (vi) availability of financing and capital, the levels of debt that we maintain and our credit ratings, (vii) risks related to our investments in our co-investment ventures and funds, including our ability to establish new co-investment ventures and funds, (viii) risks of doing business internationally, including currency risks, (ix) environmental uncertainties, including risks of natural disasters, and (x) those additional factors discussed in reports filed with the Securities and Exchange Commission by Prologis under the heading "Risk Factors." Prologis undertakes no duty to update any forward-looking statements appearing in this release.
SOURCE Prologis, Inc.