Our global development activity expanded in 2006, as we began construction of $2.5 billion of distribution space. Driven by strong market conditions, we plan to increase new development starts in 2007 to between $3.0 and $3.3 billion.
The growth in our development business reflects the strength of industrial markets around the world. North American new construction supply and absorption remain balanced, driven by growth in global trade. In Europe, demand also is strong in the majority of our markets. In Asia, new development is leasing quickly due to the continued lack of modern space. We monitor global economies closely, while also relying heavily on our associates on the ground. Their interaction with customers and ability to evaluate local market supply and demand in real time are critical elements in our capital deployment decisions. Importantly, we have solid systems and processes in place to make sure we remain disciplined in our investment approach. We believe we have the operating platform, customer relationships and strategic land positions necessary to increase our share of global development opportunities.

Matt Whelan, ProLogis SVP (l), and Mayor Will Wynn of Austin, Texas, review retail construction plans at Robert Mueller Municipal Airport, a 700-acre, mixed-use project being redeveloped by Catellus Development Group, a ProLogis company.
In addition to core warehouse development, we also are a master developer of mixed-use projects in the United States and Europe. Often undertaken at brownfield sites, these projects feature retail, office and residential developments. Catellus, a ProLogis company focused on improving land, installing infrastructure and working with developers of other property types, has managed such notable redevelopment projects as San Francisco's Mission Bay and the Los Angeles Air Force Base. In the United Kingdom, ProLogis mixed-use projects include Grange Park, a former Northampton refuse plant that now encompasses residential and commercial development, and The Bridge, a former east London hospital site being redeveloped into a dynamic new community. We believe that our experience with all aspects of mixed-use, including planning, entitlement, financing and sustainable design, represents an important strategic advantage.