Continuing with the decent pace of leasing activities for its industrial properties, Duke Realty Corporation (DRE - Analyst Report) has now disclosed the signing of deals for 1.39 million square feet of space in Coppell and the northwest Dallas region since 2014 commenced. With these transactions, Duke Realty’s overall industrial properties portfolio in Dallas, spanning 15 million square feet, is 97.7% occupied.
Specifically, the above-mentioned deals include eight renewals and four new leases. The deals have been inked with renowned companies such as Rent-A-Center, Inc. (RCII - Analyst Report), Samsung, JPMorgan Chase & Co. (JPM - Analyst Report) and Pepsico, Inc. (PEP - Analyst Report).
Apart from these, the transaction comprises a fresh lease for the recently announced new industrial development at the Point West business park in Coppell. Actually, the company pre-leased 127,189 square feet of space of this 270,498-square-foot property to Insight Merchandising.
These deals signify Duke Realty’s 15-year success as one of the leading owners of industrial assets in the Dallas/Fort Worth Airport submarket region. The company’s industrial properties in the region are occupied to 98.2%, after these deals.
As a matter of fact, Dallas/Fort Worth Airport region’s industrial market has been proceeding strong since the past few quarters with falling vacancy rates and rising average asking rental rates. With excellent highway access and vicinity to the airport and beyond, the industrial properties in this submarket are among the top choices of the warehouse and distribution companies.
Duke Realty seems to be capitalizing on it with its premium industrial offerings that provide convenient linkage to all major transport networks of the region. The pre-leasing of new industrial development at Point West is a testament to this.
Of late, Duke Realty has been focusing more on scaling down its suburban office assets to bolster its bulk industrial business. Accordingly, last week, the company leased industrial building to North Bay Distribution Inc. and ALG Direct Inc. in I-55 submarket and gained solid traction in the Chicago market (Read: Duke Realty Leasing Industrial Space in I-55 submarket Chicago). We expect these portfolio repositioning efforts to boost this Zacks Rank #2 (Buy) company’s internal growth metrics in the near future.