ProLogis (PLD.N) and AMB (AMB.N), which will merge later this quarter, said the rebound in demand for warehouse and distribution space globally propelled leasing in the first quarter, although both incurred costs from damage to their properties in Japan following last month's earthquake and tsunami. Over the past few months, investor interest in the sector, referred to as "industrial real estate" has grown. Rents are bottoming and demand is rising, driven by the need for more modern space to hold and ship products ranging from diapers to drugs as global economies heal. Denver-based ProLogis is set to merge this quarter with San Francisco-based AMB in a marriage that will create a global company with a foothold in nearly all the world's major shipping centers. But the merger mania and enthusiasm may have gotten too far ahead of results and inflated the companies' share prices, and investors were disappointed with tempered results the companies released Wednesday.
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