Prologis Inc ( PLD - Analyst Report ) , a real estate investment trust (REIT), has recently signed a build-to-suit agreement spanning approximately 1.2 million square feet of space in Lancaster, south of Dallas. The deal was penned with a leading food and beverage company with construction expected to begin in January 2013.

The new facility will come up at Prologis Park which features direct access to major interstates. Currently the park includes two fully-leased buildings spanning 1.2 million square feet. Including the agreement and a further 654,000 square feet facility under construction, the logistics park will be having a total of approximately 3.1 million square feet of space.

With this agreement, Prologis is likely to strengthen its relationship with its customers in Dallas. Continuous growth is expected in the Dallas market in the forthcoming years making it an important logistics hub. Close proximity to major metropolitan areas with major job growth and the strong leasing activities in the region reflect the inherent high quality of the distribution facilities of the company, helping to present attractive investment propositions. Currently, Prologis owns and manages over 23 million square feet of distribution space in 160 facilities (94.3% leased) within the Dallas submarket.

Prologis acquires, develops, operates and manages industrial real estate space in North America, Asia and Europe. The majority of the company’s portfolio comprises high throughput distribution (HTD), which provides multiple options for quick movement and the distribution of goods to the customer.

The company provides industrial distribution warehouse space in some of the busiest distribution markets across the globe. The properties of the company are typically located in large, supply-constrained infill markets in close proximity to airports, seaports, and ground transportation facilities, which enable rapid distribution of customers’ products. This has enabled the company to gain a significant pricing advantage over its competitors.

ProLogis currently retains a Zacks #3 Rank, which translates into a short-term Hold rating. We are also maintaining our long-term Neutral recommendation on the stock. One of its competitors, PS Business Parks Inc. ( PSB - Analyst Report ) holds a Zacks #4 Rank which translates into a short-term Sell rating.