ProLogis' strength of the industrial market in the United Kingdom has netted the company at least two large tenant signings.
In Swindon, 60 miles west of London and near Heathrow Airport, Honda Logistics U.K. has requested a 350,000-square-foot build-to-suit property in ProLogis South Marston Park. The distribution facility should be completed by January 2006. And ProLogis plans to begin building an additional 300,000-square-foot speculative project in South Marston Park later this year.
Its second build-to-suit deal, called Center 38, is located in Barton-under-Needwood, just north of Birmingham, and signed by tire manufacturer Pirelli, which will occupy its second large distribution facility. Center 38 should include 365,000 square feet, with room for an additional 250,000 square feet of development.
At $20.50 per square foot, the Heathrow Airport submarket had the highest average rent of all international markets at the end of the third quarter 2004, according to CB Richard Ellis Inc. Meanwhile, rents in Birmingham averaged $11 per square foot at the end of the third quarter.
Leasing has been most active for distribution facilities in the U.K., which has a scarcity of land, noted CB Richard Ellis. One such example is ProLogis' Park Daventry at Apex Park. Whistlestop Discount Stores Ltd. just leased the last remaining 150,000 square feet of distribution space there.