ProLogis Leases in Mexico - Analyst Blog

ProLogis (PLD), a leading global provider of distribution facilities, recently signed four new leasing agreements spanning about 345,000 square feet of its development portfolio in Mexico. With improving property values and growing institutional demand for quality properties, ProLogis has witnessed a growing customer interest in its distribution facilities across the globe. In addition, leasing decisions that were earlier postponed due to volatility in the markets are gradually coming off the shelf.

About 111,000 square feet of space were leased to Ansell Perry, a global leader in barrier protective solutions, specializing in surgical, examination and industrial gloves, protective clothing and prophylactics. The lessee will occupy the space in Bermudez Industrial Center Building One in northeast Juarez.

The company leased 94,000 square feet at ProLogis Park Alamar Building One in Tijuana, adjacent to the U.S./Mexico border, to an unnamed global leader in orthopedic devices. ProLogis also leased 75,000 square feet of space at ProLogis Park El Salto Building Eight in Guadalajara to third-party logistics provider M & M Land Logistics.

At the same time, ProLogis leased 65,000 square feet of space at ProLogis Park Toluca Building Four in southwest Mexico City to CKS De Mexico, a high-tech display manufacturer and service provider in the country. With the deal, the distribution facility is 66% leased.

ProLogis owns and manages interests in over 2,500 distribution facilities, service offices and properties spanning 475 million square feet of space (including properties under development), out of which approximately 18.6 million square feet are located in Mexico.

The company leases its industrial facilities to over 4,400 customers, which mostly include manufacturers, retailers, transportation companies, third-party logistics providers and other enterprises with large-scale distribution needs. We maintain our Neutral rating on ProLogis, which currently has a Zacks #3 Rank, indicating a short-term ‘Hold’ recommendation.