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Duke Realty Enjoys Solid Demand for Turnpike Crossing Assets

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Duke Realty Corp. is experiencing solid demand for properties in Turnpike Crossing industrial park. The company stated that Turnpike Crossing 6729 — a 146,253-square feet industrial building that was delivered on Sep 1 — has been 75% leased.

Eastern Metal Supplies, a distributor and fabricator of aluminum extrusions and sheet products, has leased 109,523 square feet in the property. The other three buildings that have been delivered in Turnpike Crossing 1315, 1333 and 6747, enjoy full occupancy.

Notably, South Florida’s Turnpike Crossing encompasses 67.2 acres which can accommodate 882,850 square feet in up to six modern Class A warehouses. Turnpike Crossing has a solid advantage, courtesy of location and highway accessibility. Moreover, all of Duke Realty’s buildings in the park, with two years of age or less, offer latest features that attract customers. Further, the company has scope to undertake additional development in the remaining portions of land in the asset.  

Duke Realty has solid presence in South Florida with a portfolio of nearly 7.5 million square feet of industrial properties. This will help the company leverage on the healthy fundamentals in this asset category in the market.

In fact, on an overall basis, the industrial real estate asset category has grabbed attention as high consumer spending, strength in e-commerce market and a healthy manufacturing environment amid recovering economy as well as job market are boosting demand for the real estate category. This is providing growth opportunities for industrial REITs, including Prologis, Inc. (PLD - Free Report) , Duke Realty, Terreno Realty (TRNO - Free Report) and Liberty Property Trust .

Particularly, Duke Realty has resorted to sale of sub-urban office assets and medical office buildings in the past to transform into a domestic-focused industrial property REIT. Moreover, the quick leasing of recently delivered properties underscores the robust demand in the market for modern and first-class distribution space.

In fact, Duke Realty owns and operates industrial properties comprising approximately 150 million square feet of rentable space. These properties are located in 21 key logistics markets.

However, with rising supply of industrial real estate space, there is lesser scope for rent hike. Also, any protectionist trade policies will have an adverse impact on economic growth as well as the company’s business in the long term.

Duke Realty currently has a Zacks Rank #3 (Hold). In the past six months, the stock has returned 11.5%, outperforming the industry’s 7.5% rise. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.



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