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Terreno Realty (TRNO) Leases Seattle Property, Sees Solid Demand
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Terreno Realty (TRNO - Free Report) recently announced the execution of leases with a provider of omnichannel logistics programs for a property in Seattle, WA. The leases comprised a total of 57,000 square feet in the company’s SoDo Row redevelopment property in Seattle. With these leases, the SoDo Row is now 65% leased.
For 32,000 square feet of space, the leasing began on Sep 1, 2021, while for the remaining 25,000 square feet, the leasing will commence on Dec 31, 2021. These leases are slated to expire on Mar 31, 2027.
Last month, the company also announced the execution of a lease with a global logistics and supply-chain provider for a property in Gardena, CA. This 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 above-mentioned 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, the demand for logistics infrastructure and efficient distribution networks has been shooting up. This is aiding the industrial real estate market to prosper.
In addition to the fast adoption of e-commerce, the 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. Recently, the company announced shelling out $17.9 million for the buyout of an industrial property in Carlstadt, NJ. The latest buyout in Carlstadt comes after the company’s recent purchase of an industrial property in Hayward, CA for $8.3 million.
The REIT 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 the industrial real estates. However, with the asset category being attractive in these challenging times, there is a development boom in a number of markets, leading to stiff competition, which might mar Terreno Realty’s growth tempo to some extent.
In the past six months, shares of the company have gained 24.1% compared with its industry's rally of 23.8%.
Image: Bigstock
Terreno Realty (TRNO) Leases Seattle Property, Sees Solid Demand
Terreno Realty (TRNO - Free Report) recently announced the execution of leases with a provider of omnichannel logistics programs for a property in Seattle, WA. The leases comprised a total of 57,000 square feet in the company’s SoDo Row redevelopment property in Seattle. With these leases, the SoDo Row is now 65% leased.
For 32,000 square feet of space, the leasing began on Sep 1, 2021, while for the remaining 25,000 square feet, the leasing will commence on Dec 31, 2021. These leases are slated to expire on Mar 31, 2027.
Last month, the company also announced the execution of a lease with a global logistics and supply-chain provider for a property in Gardena, CA. This 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 above-mentioned 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, the demand for logistics infrastructure and efficient distribution networks has been shooting up. This is aiding the industrial real estate market to prosper.
In addition to the fast adoption of e-commerce, the 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. Recently, the company announced shelling out $17.9 million for the buyout of an industrial property in Carlstadt, NJ. The latest buyout in Carlstadt comes after the company’s recent purchase of an industrial property in Hayward, CA for $8.3 million.
The REIT 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 the industrial real estates. However, with the asset category being attractive in these challenging times, there is a development boom in a number of markets, leading to stiff competition, which might mar Terreno Realty’s growth tempo to some extent.
In the past six months, shares of the company have gained 24.1% compared with its industry's rally of 23.8%.
Image Source: Zacks Investment Research
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.