LIVE BLOG: Keith Stauber and ProLogis Central Region President Jeremy Giles at the CIP Industrial Summit

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20120608-060124.jpgJLL’s Keith Stauber (left) kicks off today’s 9th Annual CIP Industrial Summit with a one-on-one interview with Prologis Central Region President Jeremy Giles one year after that firm’s merger with AMB created the country’s largest industrial REIT.

8:30 a.m. — Giles on the merger: “The thing about the merger, in terms of assets, was how well the two companies’ assets fit together and complimented each other. AMB had a bigger presence near airports and Prologis focused more on bulk.”

8:40 a.m. — Giles on the ProLogis strategy for leasing up assets post-recession: “We’re going to meet the market and were gonna do deals. In the downturn, we solved for occupancy and shorter-term deals. Now we’re finding that we’re focused on making longer terms and meeting in the middle on rates.”

8:45 a.m. — Stauber on Prologis’ portfolio: “20 percent of the company’s portfolio is in California and 7 percent (40 million SF) is in Chicago.”

8:47 a.m. — Giles on potential acquisitions in Chicago: “Chicago is a fascinating investment market right now. What you’ll see is we’ll make the occasional stabilized acquisition, but what’s more attractive to us are opportunities where we can create some value. Generally speaking we really love vacancy.”

8:50 a.m. — Giles on general market conditions in Chicago: “I think what you’ll see is rents will be flat to slightly positive this year. We’re already starting to see rent growth in certain markets and submarkets and we’re excited to see where rents will go in the next few years.”

8:55 a.m. Giles on corporate users: “I think our corporate clients are still struggling with the uncertainty that’s out there and that pauses decision-making. They don’t want to be blind-sided. Once people begin to understand more clearly what the ground rules are later this year, they’re going to begin to act and spend some of that cash they’re sitting on.”

8:58 a.m. — Giles on development opportunities: “Spec development is beginning to make sense in a lot of markets (Houston, Dallas, Indianapolis). Big box has gotten to be very, very tight. Spaces in our portfolio above 250,000 SF are 98 percent leased.”

9 a.m. — Giles on Prologis’ relationship with brokers: “We want to do more business with brokers. It’s a real focus of our company.”

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