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Demand for Industrial Space on the Rise: ProLogis

New data shows industrial space utilization at its highest level since April 2008 and indicates stronger inventory growth in the months ahead, Hamid Moghadam and Walt Rakowich of industrial real estate firm ProLogis told CNBC Monday.

"Inventories drive demand for our product... at the depth of of the downturn [inventories] were down eight percent from the peak, we've gotten half of that back," said Moghadam, the chairman and co-CEO of ProLogis.

ProLogis , which recently merged with AMB Property, reported that inventory growth more than tripled in the fourth quarter of 2009, according to the Industrial Space Utilization Index.

The index which measures the direction of the market, started coming back in the middle of 2009 and has really picked up speed at the end of 2010 and early 2011, according to Moghadam. "The most recent ticks were the strongest that we have seen ever since the downturn," he said.