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Duke Realty (DRE) Secures Lease Deal at TransDulles Centre
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Duke Realty Corp. is witnessing solid demand for its well-located, modern industrial real estate in Washington, D.C. Recently, this industrial REIT secured a lease deal at TransDulles Centre 22633 for 24,050 square feet of space at 22633 Davis Drive in Sterling, VA, which has enabled the company’s Washington, D.C. portfolio achieve 100% occupancy.
The TransDulles Centre is a first-class 850,000-square-foot, 13-building industrial park in Loudoun County. This class-A warehouse space enjoys convenient access to major highways, including the Dulles Toll Road, Route 28 and Washington Dulles International Airport. It is minutes away from Washington, D.C. and enjoys ample amenities, including lodging, restaurants and service providers. The highway accessibility and proximity to population centers are likely to have attracted the tenants to industrial real estate space.
Demand for logistics infrastructure and efficient distribution networks have been shooting up amid the e-commerce boom, growth in industries and companies making efforts to improve supply-chain efficiencies, thereby helping the industrial real estate market to prosper.
Apart from the fast adoption of e-commerce, logistics real estate is anticipated to benefit from a likely increase in the inventory levels post the global health crisis, offering scope to industrial landlords, including Duke Realty, Prologis (PLD - Free Report) , Terreno Realty Corporation (TRNO - Free Report) and Rexford Industrial Realty, Inc. (REXR - Free Report) to enjoy a favorable market environment.
Given Duke Realty’s solid capacity to offer modern, high-quality logistics facilities, it is well poised to bank on this trend. It is witnessing healthy demand in its markets and leased 9.5 million square feet of space during the September-end quarter. Tenant retention was 71.5% for the reported quarter and 86.2% after considering the immediate backfills.
Duke Realty also has a solid nationwide property base, with the REIT owning and operating roughly 160 million rentable square feet of industrial assets in 19 key U.S. logistics markets, enabling it to benefit from the healthy trend in the industrial real estate market.
However, with the asset category being attractive in these challenging times, there is a development boom in several markets, which is likely to fuel competition and curb the pricing power.
Prologis carries a Zacks Rank of 2 (Buy) at present. Prologis’ 2021 funds from operations (FFO) per share is expected to increase 8.2% year over year.
The Zacks Consensus Estimate for PLD’s 2021 FFO per share has been revised marginally upward in a month.
Terreno Realty holds a Zacks Rank of 2 at present. The 2021 FFO per share for Terreno Realty is expected to increase 19.4% year over year.
The Zacks Consensus Estimate for TRNO’s 2021 FFO per share has been revised marginally upward in a month.
The Zacks Consensus Estimate for Rexford Industrial’s ongoing-year FFO per share has moved 1.2% north to $1.63 over the past month.
The Zacks Consensus Estimate for Rexford Industrial’s 2021 FFO per share suggests an increase of 23.5% year over year. Currently, REXR carries a Zacks Rank of 2.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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Duke Realty (DRE) Secures Lease Deal at TransDulles Centre
Duke Realty Corp. is witnessing solid demand for its well-located, modern industrial real estate in Washington, D.C. Recently, this industrial REIT secured a lease deal at TransDulles Centre 22633 for 24,050 square feet of space at 22633 Davis Drive in Sterling, VA, which has enabled the company’s Washington, D.C. portfolio achieve 100% occupancy.
The TransDulles Centre is a first-class 850,000-square-foot, 13-building industrial park in Loudoun County. This class-A warehouse space enjoys convenient access to major highways, including the Dulles Toll Road, Route 28 and Washington Dulles International Airport. It is minutes away from Washington, D.C. and enjoys ample amenities, including lodging, restaurants and service providers. The highway accessibility and proximity to population centers are likely to have attracted the tenants to industrial real estate space.
Demand for logistics infrastructure and efficient distribution networks have been shooting up amid the e-commerce boom, growth in industries and companies making efforts to improve supply-chain efficiencies, thereby helping the industrial real estate market to prosper.
Apart from the fast adoption of e-commerce, logistics real estate is anticipated to benefit from a likely increase in the inventory levels post the global health crisis, offering scope to industrial landlords, including Duke Realty, Prologis (PLD - Free Report) , Terreno Realty Corporation (TRNO - Free Report) and Rexford Industrial Realty, Inc. (REXR - Free Report) to enjoy a favorable market environment.
Given Duke Realty’s solid capacity to offer modern, high-quality logistics facilities, it is well poised to bank on this trend. It is witnessing healthy demand in its markets and leased 9.5 million square feet of space during the September-end quarter. Tenant retention was 71.5% for the reported quarter and 86.2% after considering the immediate backfills.
Duke Realty also has a solid nationwide property base, with the REIT owning and operating roughly 160 million rentable square feet of industrial assets in 19 key U.S. logistics markets, enabling it to benefit from the healthy trend in the industrial real estate market.
However, with the asset category being attractive in these challenging times, there is a development boom in several markets, which is likely to fuel competition and curb the pricing power.
Duke Realty currently carries a Zacks Rank #3 (Hold). DRE’s shares have gained 23.9%, outperforming its industry’s increase of 1.3% over the past six months. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Prologis carries a Zacks Rank of 2 (Buy) at present. Prologis’ 2021 funds from operations (FFO) per share is expected to increase 8.2% year over year.
The Zacks Consensus Estimate for PLD’s 2021 FFO per share has been revised marginally upward in a month.
Terreno Realty holds a Zacks Rank of 2 at present. The 2021 FFO per share for Terreno Realty is expected to increase 19.4% year over year.
The Zacks Consensus Estimate for TRNO’s 2021 FFO per share has been revised marginally upward in a month.
The Zacks Consensus Estimate for Rexford Industrial’s ongoing-year FFO per share has moved 1.2% north to $1.63 over the past month.
The Zacks Consensus Estimate for Rexford Industrial’s 2021 FFO per share suggests an increase of 23.5% year over year. Currently, REXR carries a Zacks Rank of 2.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.