TOKYO- Hitachi Collabonext Transport System Co. has signed a lease for 328,000 square feet of the 1.55-million-square-foot ProLogis Parc Kawajima, a project now under construction. The tenant, a subsidiary of Hitachi Transport System, a leading third-party logistics provider, is scheduled to occupy the space at ProLogis Parc Kawajima in mid-2011 when the new distribution facility is completed.
Mike Yamada, president for ProLogis in Japan, said that in addition to the signed agreement with Hitachi Transport, ProLogis is under way with preleasing discussions with additional customers and has letters of intent or expressions of interest for more than one-third of the space. Yamada describes the tenant interest as "a sign that the Tokyo market supports the need for new, high-quality distribution space."
ProLogis resumed development of ProLogis Parc Kawajima, after previously halting construction, in the first quarter of 2010 in response to customers' ongoing distribution needs. Yamada notes that demand for new, modern distribution space has remained consistent "throughout the global recession."
Commenting further on the market, Yamada adds, "Businesses continue to shift from owning to leasing facilities while others focus on consolidating distribution operations from older buildings into newer, state-of-the-art distribution centers to increase efficiencies."
In 2008, ProLogis made plans to build the five-story, 1.55-million-square foot distribution center near Tokyo. Construction was halted on the facility when ProLogis placed all global development starts on hold in response to the global recession.
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