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Duke Realty Sees Solid Demand, Preleases 72% of Medley Facility
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Duke Realty Corp. has been witnessing solid demand from tenants for its logistics spaces. The REIT recently achieved 72% of preleasing for its latest 221,984-square-foot logistics building in Medley, FL. The tenant is a distributor of technology products.
The above-mentioned lease is for 160,793 square feet in the first building in a new, planned two-building development on the 34.92 acre site, which will be known as the Miami 27 Business Park. Construction for the facility is yet to begin and the tenant will likely occupy the space in September 2021.
Notably, the Miami 27 Business Park is being built on the site of a former lumberyard and the 221,984-square-foot facility will be known as Miami 27 Business Park 10310. The site is adjacent to the U.S. Highway 27 that facilitates fast access to the Florida Turnpike, I-75, and State Road 826, a roadway which offers direct access to the cargo area of the Miami International Airport.
Several efforts are also being made for transportation-infrastructure improvement to boost traffic flow. Thus, the logistics facility’s advantageous location is likely to attract more tenants seeking a reduction in transportation costs and efficiency improvement.
The company plans to offer the residual 61,191 square feet of space in Miami 27 Business Park 10310 as a move-in ready, first-class space to clients. Moreover, the other parcel in Miami 27 Business Park can accommodate a 501,224-square-foot building and its construction will likely start upon a prelease or build-to-suit request.
Remarkably, the company is well poised to capitalize on the favorable fundamentals and carry on the trend amid an impressive demand for industrial properties in the region, and given Duke Realty’s solid presence with ownership and operation of more than 8.5 million square feet of industrial properties in South Florida.
Apart from witnessing robust demand for its Florida properties, Duke Realty has been seeing robust demand for the company’s assets in other locations as well. The company leased 7.6 million square feet of space during the June-end quarter, including 1.4 million square feet of short-term leases. It recorded leasing of speculative space in both in-service and under-development portfolios, the in-service portfolio being 96.7% leased as of Jun 30, 2020, up from 96.5% as of Mar 31, 2020 and 95.4% as of Jun 30, 2019.
In fact, amid an e-commerce boom, growth in industries and companies making efforts to improve supply chain efficiencies, demand for logistics infrastructure and efficient distribution networks has been increasing, thereby opening up growth prospects for industrial REITs like Duke Realty, Prologis, Inc. (PLD - Free Report) , Terreno Realty Corp. (TRNO - Free Report) and Rexford Industrial Realty, Inc. (REXR - Free Report) .
Therefore, Duke Realty’s capacity to bank on this favorable trend is likely to help the company witness active leasing and healthy rent levels across its properties in the upcoming period. However, the pandemic’s adverse impact on economy and a development boom in some markets are concerns.
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Duke Realty Sees Solid Demand, Preleases 72% of Medley Facility
Duke Realty Corp. has been witnessing solid demand from tenants for its logistics spaces. The REIT recently achieved 72% of preleasing for its latest 221,984-square-foot logistics building in Medley, FL. The tenant is a distributor of technology products.
The above-mentioned lease is for 160,793 square feet in the first building in a new, planned two-building development on the 34.92 acre site, which will be known as the Miami 27 Business Park. Construction for the facility is yet to begin and the tenant will likely occupy the space in September 2021.
Notably, the Miami 27 Business Park is being built on the site of a former lumberyard and the 221,984-square-foot facility will be known as Miami 27 Business Park 10310. The site is adjacent to the U.S. Highway 27 that facilitates fast access to the Florida Turnpike, I-75, and State Road 826, a roadway which offers direct access to the cargo area of the Miami International Airport.
Several efforts are also being made for transportation-infrastructure improvement to boost traffic flow. Thus, the logistics facility’s advantageous location is likely to attract more tenants seeking a reduction in transportation costs and efficiency improvement.
The company plans to offer the residual 61,191 square feet of space in Miami 27 Business Park 10310 as a move-in ready, first-class space to clients. Moreover, the other parcel in Miami 27 Business Park can accommodate a 501,224-square-foot building and its construction will likely start upon a prelease or build-to-suit request.
Remarkably, the company is well poised to capitalize on the favorable fundamentals and carry on the trend amid an impressive demand for industrial properties in the region, and given Duke Realty’s solid presence with ownership and operation of more than 8.5 million square feet of industrial properties in South Florida.
Apart from witnessing robust demand for its Florida properties, Duke Realty has been seeing robust demand for the company’s assets in other locations as well. The company leased 7.6 million square feet of space during the June-end quarter, including 1.4 million square feet of short-term leases. It recorded leasing of speculative space in both in-service and under-development portfolios, the in-service portfolio being 96.7% leased as of Jun 30, 2020, up from 96.5% as of Mar 31, 2020 and 95.4% as of Jun 30, 2019.
In fact, amid an e-commerce boom, growth in industries and companies making efforts to improve supply chain efficiencies, demand for logistics infrastructure and efficient distribution networks has been increasing, thereby opening up growth prospects for industrial REITs like Duke Realty, Prologis, Inc. (PLD - Free Report) , Terreno Realty Corp. (TRNO - Free Report) and Rexford Industrial Realty, Inc. (REXR - Free Report) .
Therefore, Duke Realty’s capacity to bank on this favorable trend is likely to help the company witness active leasing and healthy rent levels across its properties in the upcoming period. However, the pandemic’s adverse impact on economy and a development boom in some markets are concerns.
Shares of this Zacks Rank #2 (Buy) company have appreciated 16.7% over the past year, while its industry has declined 6.9%. 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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