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Duke Realty's (DRE) Development Starts Reach $373M YTD
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Duke Realty Corp. announced eight development starts’ execution since the beginning of the current year, aggregating $373 million. These projects are in coastal Tier 1 markets, and in in-fill sites in other Tier 1 markets.
Encompassing a total of 3.7 million square feet, these new development starts are expected to get LEED certification. Moreover, beginning in early 2022, these projects are expected to contribute to earnings and realize substantial value creation, per management.
The company plans to source the funding for the projects, which are 58% pre-leased in the aggregate, from prior-announced estimations for 2021 asset dispositions that will be significantly accomplished in the first half of the current year.
With a robust pipeline of development, both build-to-suit and speculative, as well as an active pipeline of build-to-suit prospects, the industrial REIT is well poised to enhance its presence in Tier 1 markets. Notably, the company had guided for 2021 development starts at $700-$900 million.
Among the above-mentioned eight projects are a 1.2 million-square-foot build-to-suit project in the Chicago MSA for Wayfair, Inc.; a 655,000-square-foot build-to-suit project in the city of Chicago on an in-fill, rail-served site for a repeat customer in the home improvement and building supplies sector; and a 317,000-square-foot build-to-suit project for an A-rated, not-for-profit healthcare system in Atlanta, GA.
Given the strong demand for the industrial real estate category, the company also came up with a number of development starts on a speculative basis. These include a 300,000-square-foot speculative development in the Chicago MSA on a rail-served site, a 239,000-square-foot speculative project in Atlanta, and a three-building in-fill speculative project comprising 163,000 square feet in Southern California in the South Bay submarket.
The list also includes a 347,000-square-foot speculative development in the Northern California Central Valley submarket and a 501,000 square foot speculative development in the Miami Medley submarket at the company’s in-fill located Miami 27 Park.
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 have been increasing. This is helping the industrial real estate market grow. Moreover, over the long term, apart from the fast adoption of e-commerce, logistics real estate is anticipated to benefit from a likely increase in inventory levels post 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) , among others, to enjoy a favorable market environment.
Particularly, given Duke Realty’s solid capacity to offer modern, high-quality logistics facilities, the company remains well poised to bank on this trend. The company is making efforts to improve its portfolio on the back of development and acquisitions in strategic markets with solid growth potential.
+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
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Duke Realty's (DRE) Development Starts Reach $373M YTD
Duke Realty Corp. announced eight development starts’ execution since the beginning of the current year, aggregating $373 million. These projects are in coastal Tier 1 markets, and in in-fill sites in other Tier 1 markets.
Encompassing a total of 3.7 million square feet, these new development starts are expected to get LEED certification. Moreover, beginning in early 2022, these projects are expected to contribute to earnings and realize substantial value creation, per management.
The company plans to source the funding for the projects, which are 58% pre-leased in the aggregate, from prior-announced estimations for 2021 asset dispositions that will be significantly accomplished in the first half of the current year.
With a robust pipeline of development, both build-to-suit and speculative, as well as an active pipeline of build-to-suit prospects, the industrial REIT is well poised to enhance its presence in Tier 1 markets. Notably, the company had guided for 2021 development starts at $700-$900 million.
Among the above-mentioned eight projects are a 1.2 million-square-foot build-to-suit project in the Chicago MSA for Wayfair, Inc.; a 655,000-square-foot build-to-suit project in the city of Chicago on an in-fill, rail-served site for a repeat customer in the home improvement and building supplies sector; and a 317,000-square-foot build-to-suit project for an A-rated, not-for-profit healthcare system in Atlanta, GA.
Given the strong demand for the industrial real estate category, the company also came up with a number of development starts on a speculative basis. These include a 300,000-square-foot speculative development in the Chicago MSA on a rail-served site, a 239,000-square-foot speculative project in Atlanta, and a three-building in-fill speculative project comprising 163,000 square feet in Southern California in the South Bay submarket.
The list also includes a 347,000-square-foot speculative development in the Northern California Central Valley submarket and a 501,000 square foot speculative development in the Miami Medley submarket at the company’s in-fill located Miami 27 Park.
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 have been increasing. This is helping the industrial real estate market grow. Moreover, over the long term, apart from the fast adoption of e-commerce, logistics real estate is anticipated to benefit from a likely increase in inventory levels post 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) , among others, to enjoy a favorable market environment.
Particularly, given Duke Realty’s solid capacity to offer modern, high-quality logistics facilities, the company remains well poised to bank on this trend. The company is making efforts to improve its portfolio on the back of development and acquisitions in strategic markets with solid growth potential.
Duke Realty currently carries a Zacks Rank #3 (Hold). The company’s shares have gained 13.9%, outperforming its industry’s rally of 11% over the past six months. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.
Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.
Click here to download this report FREE >>