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Terreno Realty (TRNO) Secures Lease for Property in Gardena

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Terreno Realty (TRNO - Free Report) recently announced the execution of a lease with a global logistics and supply-chain provider for a property in Gardena, CA. The lease for the 114,000 square feet of space will begin upon expiration of the current lease on Jan 31, 2022. Precisely, it will begin on Mar 1, 2022, and expire on Mar 31, 2027.

The industrial REIT has also 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 the 44,000 square feet of space is expected to begin on Sep 1, 2021, and expire in June 2029.

The leasing activities reflect the healthy demand for Terreno’s well-positioned properties. The 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.

The company is well poised on the back of these efforts to enhance 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.

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.

In the past six months, the company’s shares have gained 15.4%, underperforming its industry's rally of 19.1%.

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Terreno Realty currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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