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Terreno Realty (TRNO) Continues Acquisition Spree With $6.6M Buyout
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Terreno Realty Corporation (TRNO - Free Report) recently shelled out $6.6 million for the purchase of an industrial property in Tukwila, WA. The move comes as part of its acquisition-driven growth strategy.
Spanning an area of 2.1 acres at 12119 East Marginal Way S, the improved land parcel is neighbouring the State Routes 99 and 599 and Interstate 5, and is fully leased to one tenant. It has an estimated stabilized cap rate of 4.6%.
Terreno Realty is focused on expanding its portfolio on acquisitions. It targets functional assets at in-fill locations, which enjoy high-population densities and are located near high-volume distribution points. Through such efforts, the company is well poised to fortify its portfolio in the six major coastal U.S. markets — Los Angeles, Northern New Jersey/New York City, San Francisco Bay Area, Seattle, Miami and Washington, DC — which display solid demographic trends and witness healthy demand for industrial real estates.
In fact, the industrial asset class has grabbed the limelight for showing resilience amid the pandemic with low vacancy rates, high asking rents and robust rent collections. There has been a notable 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 disruptions.
This, in turn, will likely keep supporting industrial landlords like Terreno Realty, Prologis (PLD - Free Report) , Duke Realty Corp. and Rexford Industrial Realty, Inc. (REXR - Free Report) to enjoy a favorable market environment.
Terreno Realty too has been banking on such growth opportunities. Early last December, the company purchased an industrial property in Rancho Dominguez, CA, for $9.8 million. Other notable acquisitions in November include two industrial properties located in Bellevue, WA and Los Angeles, CA for $11.7 million and $4.4 million, respectively. The company has also been witnessing decent demand from new and existing tenants, which are aiding its leasing and renewal activities.
Nevertheless, the pandemic’s adverse impact on the economy might thwart demand for spaces to some extent in the near term. Rent relief and deferrals for tenants are likely to be concerns as well. Also, surplus supply is a headwind for the industrial real estate market.
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
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Terreno Realty (TRNO) Continues Acquisition Spree With $6.6M Buyout
Terreno Realty Corporation (TRNO - Free Report) recently shelled out $6.6 million for the purchase of an industrial property in Tukwila, WA. The move comes as part of its acquisition-driven growth strategy.
Spanning an area of 2.1 acres at 12119 East Marginal Way S, the improved land parcel is neighbouring the State Routes 99 and 599 and Interstate 5, and is fully leased to one tenant. It has an estimated stabilized cap rate of 4.6%.
Terreno Realty is focused on expanding its portfolio on acquisitions. It targets functional assets at in-fill locations, which enjoy high-population densities and are located near high-volume distribution points. Through such efforts, the company is well poised to fortify its portfolio in the six major coastal U.S. markets — Los Angeles, Northern New Jersey/New York City, San Francisco Bay Area, Seattle, Miami and Washington, DC — which display solid demographic trends and witness healthy demand for industrial real estates.
In fact, the industrial asset class has grabbed the limelight for showing resilience amid the pandemic with low vacancy rates, high asking rents and robust rent collections. There has been a notable 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 disruptions.
This, in turn, will likely keep supporting industrial landlords like Terreno Realty, Prologis (PLD - Free Report) , Duke Realty Corp. and Rexford Industrial Realty, Inc. (REXR - Free Report) to enjoy a favorable market environment.
Terreno Realty too has been banking on such growth opportunities. Early last December, the company purchased an industrial property in Rancho Dominguez, CA, for $9.8 million. Other notable acquisitions in November include two industrial properties located in Bellevue, WA and Los Angeles, CA for $11.7 million and $4.4 million, respectively. The company has also been witnessing decent demand from new and existing tenants, which are aiding its leasing and renewal activities.
Nevertheless, the pandemic’s adverse impact on the economy might thwart demand for spaces to some extent in the near term. Rent relief and deferrals for tenants are likely to be concerns as well. Also, surplus supply is a headwind for the industrial real estate market.
Terreno Realty currently carries a Zacks Rank #3 (Hold). The company’s shares have gained 8.5% compared with the industry's rally of 4.2% over the past six months. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>