In late July, Denver-based global logistics facility developer and service provider ProLogis announced its intention to develop more than 2.6 million sq. ft. (241,540 sq. m.) at two parks in Guangzhou and Tianjin, China. The projects were alluded to in comments from ProLogis CEO Jeffrey Schwartz during an earnings announcement the next day:
      "In Japan and China, where there is a shortage of modern logistics space, customer requirements have driven year-to-date development starts of more than $450 million, with strong leasing of recently completed facilities," he said.
      While the two properties in Shenzhen, near Guangzhou, are being developed for Chinee 3PL Shenzhen ST-Anda Logistics, the $45-million Tianjin development is an 80-20 partnership with the Tianjin Economic-Technological Development Area (TEDA) to develop one of only eight bonded logistics parks in the country. Export cargo will be considered exported at the time it enters the 1.4-million-sq.-ft. (130,000-sq.-m.) park, which allows users to regain custom tax refunds more quickly. ProLogis also has the right of first refusal to develop any future TEDA logistics parks.
      Tianjin's port saw throughput of 3.8 million TEUS in 2004, and 44 of more than 100 Fortune Global 500 companies with a presence in the area have operations in TEDA. Among the most influential industries in both Guangzhou and TEDA is the automotive sector, which represented 18 percent of total industrial output in TEDA and 11 percent in Guangzhou in 2004, according to Angela Zhao, senior manager, investment management, with ProLogis China.
      But Asia was not alone in seeing a pronounced increase in logistics focus by ProLogis tenants. The company just began work on the eight-building, 1.8-million-sq.-ft. (165,000-sq.-m.) ProLogis Park Wroclaw in Bielany Wroclawskie, Poland.
      By virtue of its pure size and diversity (further enhanced at home with the acquisition of Catellus earlier this year), the company has became a bellwether indicator for the industry, with a distribution facilities pipeline of completions, acquisitions and properties under development valued at just under $3 billion, on three continents. The company's total net investments in real estate are well over $5 billion.