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Terreno (TRNO) Leases Brooklyn Property, Sees Solid Demand

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Terreno Realty Corporation (TRNO - Free Report) is witnessing decent demand for its properties. The company recently announced the execution of a lease with the leading bike share provider in New York City for a property in East Williamsburg, Brooklyn. The lease for this 44,000 square feet of space will begin on Sep 1, 2021, and expire in June 2029.

Reflecting robust demand for industrial real estates, this REIT’s operating portfolio, excluding three properties under redevelopment, was 97.5% leased as of Jun 30, 2021 to 535 tenants, up from 96.1% as of Mar 31, 2021 and 96% as of Jun 30, 2020. Also, its improved land portfolio of 27 parcels, aggregating 97.6 acres, was 98% leased as of Jun 30, 2021, up 10 basis points sequentially.

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 shooting up. This is aiding the industrial real estate market to prosper.

In addition, apart from the fast adoption of e-commerce, logistics real estate is anticipated to benefit from a likely increase in inventory levels post the global health crisis, offering scope to industrial landlords, including Terreno Realty, Duke Realty , Prologis (PLD - Free Report) and Rexford Industrial Realty (REXR - Free Report) , among others, to enjoy a favorable market environment.

Terreno Realty is also banking on such scopes and 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. Recently, the company shelled out $50 million for the purchase of three industrial properties in Seattle, WA. Also, it acquired an industrial property in Orange, CA, for $9.3 million.

Nevertheless, with the asset category being attractive in these challenging times, there is a development boom in a number of markets. This high supply is likely to intensify competition and curb pricing power.

Terreno Realty currently carries a Zacks Rank #3 (Hold). In the past three months, the company’s shares have gained 7.4% compared with its industry's rally of 9.3%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
 

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