As East Coast distribution hubs go, they don?t get much better than Baltimore.
That?s the thinking of ProLogis and national retailers and distributors. The Denver developer of distribution facilities recently announced it leased more than 600,000 square feet of distribution space to a national retailer at ProLogis Park Edgewood on Trimble Road in Harford County.
ProLogis is one of the largest industrial logistics companies in the area, with about 3.6 million square feet of industrial space owned, managed or under development, said Mark Levy, vice president and market officer for ProLogis in Baltimore.
“We?ve been very active in the Baltimore region for several years,” Levy said. “We?re very focused on growing this market.”
Restoration Hardware Inc., an upscale furniture and accessories retailer based in Corte Madera, Calif., leased the space from ProLogis, according to CoStar Realty Information. The retailer will use the warehouse as a logistics facility serving the East Coast.
Restoration Hardware operates 111 stores in 30 states, including an outlet in The Mall at Columbia. First-quarter 2007 revenue increased 7 percent to about $142 million from about $133 million in the first quarter of 2006, according to company data.
The Baltimore area is a strong distribution location for retailers because of its proximity to the port, Interstate 95 and northeastern cities, Levy said. Large population bases in Baltimore and Washington also make the area attractive to large distributors.
“The transition highlights the attractiveness of this property as a logistics site for customers with large-scale distribution needs on the East Coast,” Michael Nachamkin, senior vice president for ProLogis, said in a statement. “We look forward to serving our customer at their new location and to expanding our portfolio here through continued development.”
ProLogis acquired the property, the building and 175 acres in late 2005, and spent several million dollars to renovate the site. A full build-out of the industrial park will accommodate four buildings with about 1.45 million square feet of distribution space.
The company, which has worked with businesses such as Saks Fifth Avenue, Solo Cup Co. and International Paper, operates in 103 markets in North America, Europe and Asia. ProLogis owns about $29 billion of assets, totaling almost 437 million square feet.
ProLogis is working on two other projects in the area, one in Baltimore and one in Baltimore County. Both are restoration jobs, Levy said.
“We are focused on buying older properties and rehabbing the product, because there is no land to be found,” Levy said. “It?s really how we?re doing our business.”
On the Move
» ProLogis moved its Baltimore/Washington regional office to Silver Spring, the company said Tuesday.
» The new 3,000-square-foot office is on Georgia Avenue. It will serve as the new home for all ProLogis employees previously based in Baltimore and Washington.
