AMB Closes 361,200 SF of New Leases in Asia
- Apr 01, 2011
March 31, 2011
By Barbra Murray, Contributing Editor
Benefiting from the increasing demand for premier industrial space in Asia, AMB Property Corp. recently closed seven leases accounting for an aggregate 361,200 square feet in Japan and China.
In Japan, AMB completed deals for four leases totaling 210,100 square feet at distribution centers in Tokyo, the most expensive industrial market in Asia. Market projections before Japan was ravaged by the earthquake and tsunami were positive, but the outlook is now a little less clear, according to a report by commercial real estate services firm Cushman & Wakefield Inc. Despite the uncertainty, strong demand for high quality, well-located industrial space is expected to continue.
AMB’s buildings in Japan escaped structural damage in the quake and tsunami. The company is contributing space for the relief and recovery efforts.
In China, as evidence of the growing call for state-of-the-art industrial properties, AMB secured three pre-lease agreements totaling 151,000 square feet at development projects in Shanghai and Dalian, which is in Northeast China’s Liaoning province. China’s strong economic recovery has resulted in an increase in industrial production, thereby causing an increase in occupier demand, as per the Cushman & Wakefield report. With a steady stream of new leases and a limited supply of premier properties in the country, Class A rents grew by 15 percent in 2010. AMB has positioned itself to capitalize on the favorable fundamentals. In mid-March, the company partnered with HIP China Logistics Investments Ltd. to launch a $1.1 billion joint venture, AMB China Logistics Venture I, for the purpose of developing, acquiring and operating logistics properties in key markets across China.
AMB’s portfolio in Asia encompassed approximately 17 million square feet of operating and in-progress industrial facilities at the close of 2010, with its operating properties featuring an average occupancy level of 95 percent and its development projects boasting pre-leases accounting for 60 percent of the planned space.