ONTARIO, CALIF. — Denver-based REIT ProLogis has announced plans to develop a new distribution center in Southern California for The Home Depot. The 667,000-square-foot project will be located on 55 acres owned by ProLogis within Crossroads Business Park in Ontario. Construction is expected to begin next month, with completion scheduled for fall 2010. The project will be pursuing LEED certification, but additional details about the building could not be released as of press time.
In a statement, Larry Harmsen, president of ProLogis in the United States and Canada, said, “Our project in Ontario is the first project we've started in the United States since the fall of 2008, when we announced a halt on all new construction. We are thrilled to start this project, as it fits in line with our new approach to development, and it enables us to meet our customer's needs.”
Harmsen cites an increase in requests for build-to-suit proposals and signs of market stabilization as reasons the REIT is resuming construction projects. ProLogis has created a plan for future develop that allows it to build projects utilizing less capital while helping generate returns from currently unproductive land. So far this year, the REIT has monetized more than $136 million of land in its global portfolio, including $16.2 million from the Crossroads parcel.
This newest project marks the third distribution center ProLogis has developed for The Home Depot in the last 18 months. The other two properties include a 659,000-square-foot center in Ohio and another 658,000-square-foot center in Southern California. Both projects are LEED-certified.
— Coleman Wood