Duke Realty Corporation (DRE - Free Report) is gaining solid traction in the Chicago market with North Bay Distribution Inc. and ALG Direct Inc. recently selecting Duke Realty industrial buildings in I-55 submarket.
Specifically, Duke Realty inked lease deals for a total of 270,131 square feet of space in two of its industrial properties in the I-55 submarket with North Bay leasing 198,731 square feet at Park 55. The total building comprises 529,000-square-foot of space.
On the other hand, ALG Direct inked a lease deal at 375 W. South Frontage Road in Bolingbrook for 71,400 square feet of space in the 187,000-square-foot industrial building.
As a matter of fact, with excellent highway access and vicinity to the rest of the Chicago metro area and beyond, the industrial properties in the I-55 submarket are among the top choices of the warehouse and distribution companies.
The recent deals are a testament to this and these new leases bring the occupancy level to 96% for the company’s overall Chicago industrial portfolio. The company owns, manages or has under development around 11.7 million square feet of office, industrial and healthcare properties in the greater Chicago area. Moreover, the availability of land banks in strategically important locations augurs well for Duke Realty’s development activities.
Given its operational strength, we believe that the company can continue its development activities going forward. Of late, the company has been focusing more on scaling down its suburban office assets to bolster its bulk industrial business. We expect these portfolio repositioning efforts to boost this Zacks Rank #2 (Buy) company’s internal growth metrics in the near future.
Investors interested in the REIT industry may also consider stocks like Aviv REIT, Inc. , Parkway Properties Inc. (PKY - Free Report) and Terreno Realty Corp. (TRNO - Free Report) . All these stocks carry a Zacks Rank #1 (Strong Buy).