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Duke Realty (DRE) Sees Solid Demand, Backfills 2 Facilities in NJ
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Duke Realty Corp. is witnessing solid demand for its modern distribution spaces in New Jersey and along the New Jersey Turnpike Corridor, particularly. Recently, the company signed lease deals for two neighboring distribution facilities in Cranbury, promptly backfilling the facilities following prior tenant’s relocation.
One of these deals involved long-term lease agreement for the 650,000-square-foot facility at 315 Half Acre Road with Cooper Electric. The other one involved leasing Comptree a nearly 300,000-square-foot facility at 311 Half Acre Road.
Both facilities are minutes from the New Jersey Turnpike Exit 8A. This advantageous location is likely to have enabled Duke Realty to immediately backfill the facilities following prior tenant’s exit.
Remarkably, there has been a surge 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 disruptions, offering scope to industrial landlords, including Duke Realty, Prologis (PLD - Free Report) , Terreno Realty Corporation (TRNO - Free Report) , Rexford Industrial Realty, Inc. (REXR - Free Report) among others to enjoy a favorable market environment.
In New Jersey too, there is a solid demand for modern distribution spaces and thus, Duke Realty’s New Jersey portfolio, aggregating eight million square feet across 20 properties, is fully occupied.
Moreover, amid rising e-commerce activities across the nation and supply-chain strategy transformations, Duke Realty is focusing on development opportunities to tap the scope. Recently, the company raised the guidance for 2020 development starts to $775-$850 million, from the prior estimate of $650-$800 million, following significant development transactions since the beginning of the current quarter. (Read more: Duke Realty Raises Guidance for 2020 Development Starts)
With a robust pipeline of development, both build-to-suit and speculative, as well as an active pipeline of build-to-suit prospects, Duke Realty is well poised to enhance its presence in Tier 1 markets.
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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Duke Realty (DRE) Sees Solid Demand, Backfills 2 Facilities in NJ
Duke Realty Corp. is witnessing solid demand for its modern distribution spaces in New Jersey and along the New Jersey Turnpike Corridor, particularly. Recently, the company signed lease deals for two neighboring distribution facilities in Cranbury, promptly backfilling the facilities following prior tenant’s relocation.
One of these deals involved long-term lease agreement for the 650,000-square-foot facility at 315 Half Acre Road with Cooper Electric. The other one involved leasing Comptree a nearly 300,000-square-foot facility at 311 Half Acre Road.
Both facilities are minutes from the New Jersey Turnpike Exit 8A. This advantageous location is likely to have enabled Duke Realty to immediately backfill the facilities following prior tenant’s exit.
Remarkably, there has been a surge 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 disruptions, offering scope to industrial landlords, including Duke Realty, Prologis (PLD - Free Report) , Terreno Realty Corporation (TRNO - Free Report) , Rexford Industrial Realty, Inc. (REXR - Free Report) among others to enjoy a favorable market environment.
In New Jersey too, there is a solid demand for modern distribution spaces and thus, Duke Realty’s New Jersey portfolio, aggregating eight million square feet across 20 properties, is fully occupied.
Moreover, amid rising e-commerce activities across the nation and supply-chain strategy transformations, Duke Realty is focusing on development opportunities to tap the scope. Recently, the company raised the guidance for 2020 development starts to $775-$850 million, from the prior estimate of $650-$800 million, following significant development transactions since the beginning of the current quarter. (Read more: Duke Realty Raises Guidance for 2020 Development Starts)
With a robust pipeline of development, both build-to-suit and speculative, as well as an active pipeline of build-to-suit prospects, Duke Realty is well poised to enhance its presence in Tier 1 markets.
Duke Realty currently carries a Zacks Rank #3 (Hold). The company’s shares have gained 11.3%, as against the industry’s decline of 3.5% over the past year. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>