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Terreno (TRNO) Sees Solid Demand, Secures Lease for Gardena Asset
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Terreno Realty Corporation (TRNO - Free Report) is witnessing decent demand for its properties. The company recently announced the execution of a lease with an asset-based logistics provider for an industrial building in Gardena, CA.
The lease for this 40,000-square-foot industrial building on 4.5 acres of land will begin immediately upon expiration of the current lease on Jun 30, 2021. It will expire on Jul 31, 2026.
Recently, the REIT also secured a lease with a commercial electric-vehicle (EV) service provider for fleet operators for an improved land parcel in Inglewood, CA. This lease for a 1.9-acre land parcel will commence upon completion of site improvements, which is likely to be in third-quarter 2021, and expire 12 years after commencement.
The leasing activities reflect the healthy demand for Terreno’s well-positioned properties. In fact, as of Mar 31, 2021, the company’s operating portfolio, exclusive of two properties under redevelopment, was 96.1% leased, while the same-store portfolio (spanning 12.7 million square feet) was 97.4% leased at the end of the quarter.
Moreover, the company was able to lock in higher rents on new and renewed leases, reflecting resilience in its portfolio. Cash rents on new and renewed leases (commenced during the first quarter) — aggregating 0.3 million square feet — grew 16%, with a tenant retention ratio of 82.3%.
Markedly, there has been a significant increase in e-commerce’s share of total retail sales, spurring demand for warehouse and distribution spaces. Apart from the fast adoption of e-commerce, the industrial real estate space is anticipated to gain traction over the long run from a likely rise in the inventory levels of companies as a precaution for any supply-chain disruption. This, in turn, will likely keep supporting industrial landlords like Terreno, Prologis (PLD - Free Report) , Duke Realty Corp. and Rexford Industrial Realty, Inc. (REXR - Free Report) to enjoy a favorable market environment.
Nonetheless, with the industrial asset category being attractive in these challenging times, there is a development boom in a number of markets. This high supply is likely to intensify competition and limit the pricing power.
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Terreno (TRNO) Sees Solid Demand, Secures Lease for Gardena Asset
Terreno Realty Corporation (TRNO - Free Report) is witnessing decent demand for its properties. The company recently announced the execution of a lease with an asset-based logistics provider for an industrial building in Gardena, CA.
The lease for this 40,000-square-foot industrial building on 4.5 acres of land will begin immediately upon expiration of the current lease on Jun 30, 2021. It will expire on Jul 31, 2026.
Recently, the REIT also secured a lease with a commercial electric-vehicle (EV) service provider for fleet operators for an improved land parcel in Inglewood, CA. This lease for a 1.9-acre land parcel will commence upon completion of site improvements, which is likely to be in third-quarter 2021, and expire 12 years after commencement.
The leasing activities reflect the healthy demand for Terreno’s well-positioned properties. In fact, as of Mar 31, 2021, the company’s operating portfolio, exclusive of two properties under redevelopment, was 96.1% leased, while the same-store portfolio (spanning 12.7 million square feet) was 97.4% leased at the end of the quarter.
Moreover, the company was able to lock in higher rents on new and renewed leases, reflecting resilience in its portfolio. Cash rents on new and renewed leases (commenced during the first quarter) — aggregating 0.3 million square feet — grew 16%, with a tenant retention ratio of 82.3%.
Markedly, there has been a significant increase in e-commerce’s share of total retail sales, spurring demand for warehouse and distribution spaces. Apart from the fast adoption of e-commerce, the industrial real estate space is anticipated to gain traction over the long run from a likely rise in the inventory levels of companies as a precaution for any supply-chain disruption. This, in turn, will likely keep supporting industrial landlords like Terreno, Prologis (PLD - Free Report) , Duke Realty Corp. and Rexford Industrial Realty, Inc. (REXR - Free Report) to enjoy a favorable market environment.
Nonetheless, with the industrial asset category being attractive in these challenging times, there is a development boom in a number of markets. This high supply is likely to intensify competition and limit the pricing power.
Terreno currently carries a Zacks Rank #3 (Hold). In the past three months, the company’s shares have gained 13%, marginally underperforming its industry's rally of 13.2%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
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