With the acquisition, Prologis will pick up additional properties in key markets of Southern California, New Jersey, South Florida, Chicago, Atlanta and Dallas.
Prologis is gaining Duke's 17.2 million square feet in industrial real estate spread across 45 buildings in Dallas, according to Duke's first quarter earnings.about 94 percent of Duke's portfolio and shed one market, but it did not disclose which market. The acquisition includes 153 million square feet of operating properties across 19 major U.S. markets, plus 11 million square feet of new properties under development and 1,228 acres of land.
"This transaction increases the strength, size and diversification of our balance sheet while expanding the opportunity for Prologis to apply innovation to drive long-term growth," said Tim Arndt, Prologis' chief financial officer."In addition to generating significant synergies, the combination of these portfolios will help us deliver more services to our customers and drive incremental long-term earnings growth.
Prologis also picks up quite a bit of Amazon properties with the acquisition. Amazon represents Duke's Realty's biggest customer, representing about $48.2 million in annualized rent for the firm as of the first quarter. In Houston, DukeAmazon is also Prologis' biggest customer as of the first quarter.24 million square feet of new industrial
space delivered throughout the Houston area, according to commercial real estate firm NAI Partners. Last quarter Houston's industrial real estate market saw solid demand outpacing supply with net absorption of 5.6 million square feet, meaning significantly more tenants moved into space than moved out, according to NAI Partners.