By Meghan Hall
Prologis has made an investment into the City of Edgewood as its plans for future development in the growing suburban town begin to form. Prologis has purchased a tract of agricultural land for $16 million, based on information from Pierce County public records. The documents indicate that the seller is affiliated with Uchida Farm LLC. The limited liability company is connected with Sahei. T Uchida, Minoru G. Uchida and Minoru Uchida of Puyallup, Wash.
Documents show that Prologis acquired five different parcels located along Valley Avenue East. Prologis has submitted a preliminary application to rezone 20.5 acres from single-family residential to industrial uses. The City of Edgewood held a public hearing on Prologis’s application on Tuesday. The parcels are designated as industrial within the City’s Future Lane Use Map.
Prologis has also been active in a wide variety of submarkets across the region. It is the developer behind Georgetown Crossroads, a three-floor 590,000 square foot industrial warehouse, as well as Prologis Park Tacoma, Sumner 17, and Prologis Washington Gateway, among many others.
Prologis is one of the largest developers of logistics real estate globally and focuses on high-barrier, high-growth markets. At the end of 2020, the company had invested in 984 million square feet of property in 4,703 buildings. Its assets are located in 19 countries. Prologis also currently has $148 billion in assets under management and produced an annual net operating income of $3.1 billion by the end of last year.
The company’s success is tied closely to the increasing demand for logistics real estate. In the Puget Sound, the industrial sector remained fairly strong during 2020 thanks to the growth of e-commerce. A recent report released by Newmark indicates that the region’s market expansion “reached new heights” last year, with 1.2 million square feet of new product delivered during the fourth quarter alone. The annual delivery total came to 4.1 million square feet, and annual net absorption came to 3.6 million square feet.
Vacancy rates fell to 4.7 percent during the fourth quarter, and rents came in at $10.12 per square foot triple-net, an increase of 4.3 percent year-over-year.
Pierce County has accounted for much of the activity in the market. Six million square feet of space is currently under construction, and 5.6 million square feet have been delivered over the past two years.
“Pierce County had a strong fourth quarter as tenants continue to pursue the lower rents and newer construction it offers,” Newmark states. “…Pierce County has been expanding at a furious pace and accounted for more than half of all ongoing construction in the region in the fourth quarter.”