CINCINNATI-The June merger of ProLogis and AMB Property Corp. forced local ProLogis manager David Kelly to rethink his future with his employer. Two months later, he’s taken a job with Cassidy Turley but is doing the same thing, overseeing the management of about 7.4 million square feet for the San Francisco-based ProLogis Inc. in the Cincinnati area.
Kelly tells GlobeSt.com that he saw the writing on the wall, and decided to pitch an outsourcing idea to ProLogis leaders. With 16 years in, and experience with every one of the 32 buildings and three land sites owned by the company, Kelly says he thought another firm could use his knowledge. He joined CT as a vice president, and will continue to handle tenant negotiations and lease renewals for the properties. “ProLogis wants to focus more on major markets, and this outsourcing allows them to continue their presence in secondary markets,” he says.
The local ProLogis properties include various industrial parks, including Prologis Park Airpark, Prologis Fairfield Business Center and Prologis World Park 1. The portfolio also includes 75 acres of ready-to-build land sites.
It’s unlikely, however, that there will be much building in this region. Kelly says the warehouse market has been stagnant, with flat net absorption the past seven years. He says there has been some lease transactions, such as Swim.com taking 390,000 square feet, and Innotrac leasing 198,000 square feet. “Development activity is at a standstill,” he says.
Outsourcing is becoming more of a major trend for owners, Kelly says, especially in the Cincinnati area. “Full in-house staffs are dwindling,” he says. “It’s the way of the future, and no different than the high-tech and consumer products industries.”
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
