GO
Loading...

Industrial Leasing Rebounding: Prologis CEO

Prologis may own big industrial warehouses, but it will benefit from a recovery in the U.S. housing market, chairman Hamid Moghadam told CNBC's "Street Signs" on Wednesday.

"If you look at our really large buildings, we're 100 percent leased," the industrial REIT executive said. "If you look at our smaller buildings – under 100,000 feet – we're 90 percent leased. That's the sweet spot of the housing market."

Moghadam said these are the buildings that tile companies, counter top firms and appliance people rent.

"As the housing market comes back," Moghadam said, "if we get in the 1 million 1.2 million housing starts, we'll see a surge in that segment of the market. When that sector comes back our occupancies will continue to increase."

(Read More: The Housing Recovery Continues)

Rents should also start to come back this year. After a 2.4 percent average decline in 2012, the leases that it signed at the height of the market in 2008 are rolling lower. But Moghadam said "This is the last of the high rents that are getting marked to market."

Moghadam also said the rest of the world is growing faster than the U.S. with the exception of Japan and Europe. And China, Brazil and Mexico are doing extremely well.

"Across the globe, it's the strongest we've seen in the past few years," the Prologis chairman said.

Contact Real Estate

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    To learn more about how we use your information,
    please read our Privacy Policy.
    › Learn More
  • Diana Olick serves as CNBC's real estate correspondent as well as the editor of the Realty Check section on CNBC.com.

Latest Special Reports

  • The clock is ticking its last 2014 tocks, and for stocks, that means it's time for a portfolio review and tuneup.

  • From the birth of a child to college, marriage, and retirement, a successful investment path leads to the good life.

  • With people living longer and saving less, they are finding that retirement and work are no longer mutually exclusive.