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Duke Realty (DRE) Gains Full Occupancy for Chicago Portfolio
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Duke Realty Corp. recently secured two lease deals for its Chicago portfolio. With this, the company achieved 100% occupancy for its 17.4 million-square-foot in-service Chicago portfolio, reflecting solid demand for Duke Realty’s strategically located, high-quality facilities.
The company inked a lease deal for 198,696 square feet of space at 1341 Enterprise Drive in Romeoville, IL with Goodwill Industries. There is also a commitment to expand into the entire facility aggregating 324,115 square feet by 2023. The other lease deal is with one of North America’s largest wire and cable producers, Southwire Company, for 83,125 square feet of space at 430 Kimberly Drive in Carol Steam, IL.
Duke Realty’s Chicago office completed 6 million square feet of lease renewals, new deals and expansions in 2021. Management has credited the company’s “strategically located, state-of-the-art facilities” and its “reputation as a tenant-focused landlord” for achieving an “incredible milestone” in the Chicago land area.
Demand for logistics infrastructure and efficient distribution networks has been shooting up amid an e-commerce boom, with growth in industries and companies making efforts to improve supply-chain efficiencies. This, in turn, is helping the industrial real estate market to prosper. 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 to enjoy a favorable market environment.
Given Duke Realty’s solid capacity to offer modern, high-quality logistics facilities, it is poised to bank on this trend. Amid favorable fundamentals, Duke Realty is not only experiencing solid leasing activities but also focusing on developing new facilities and securing leases before project completions. DRE has four development projects under construction in the market totaling 2.5 million square feet of additional space.
These include a 1,200,420-square-foot e-commerce fulfillment center for Wayfair LLC at Airport Logistics Center Phase II in Romeoville, IL, a 622,200-square-foot build-to-suit facility for a national home improvement retailer in Bedford, IL, a 370,973-square-foot speculative development in Woodridge, IL and a 299,520-square-foot facility in Bellwood, IL, preleased to a snack food manufacturer.
Duke Realty is witnessing healthy demand not only in the Chicago market but also in other markets. DRE leased 9.5 million square feet of space during the September-end quarter. Tenant retention was 71.5% for the reported quarter and 86.2% after considering the immediate backfills.
Some better-ranked stocks from the REIT sector include Terreno Realty Corporation (TRNO - Free Report) , CubeSmart (CUBE - Free Report) and Rexford Industrial Realty (REXR - Free Report) .
Terreno Realty holds a Zacks Rank of 2 (Buy) at present. Terreno Realty’s 2021 FFO per share is projected to increase 19.4% year over year.
Also, the Zacks Consensus Estimate for TRNO’s 2022 FFO per share has been revised marginally upward in the past two months.
The Zacks Consensus Estimate for CubeSmart’s 2021 FFO per share has moved 2.4% north to $2.10 over the past two months.
Currently, CubeSmart carries a Zacks Rank of 1. CUBE's long-term growth rate is projected at 11.2%.
The Zacks Consensus Estimate for Rexford Industrial’s 2021 FFO per share has moved 1.2% north to $1.63 over the past two months.
Currently, Rexford Industrial carries a Zacks Rank of 2. REXR's long-term growth rate is projected at 12.9%.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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Duke Realty (DRE) Gains Full Occupancy for Chicago Portfolio
Duke Realty Corp. recently secured two lease deals for its Chicago portfolio. With this, the company achieved 100% occupancy for its 17.4 million-square-foot in-service Chicago portfolio, reflecting solid demand for Duke Realty’s strategically located, high-quality facilities.
The company inked a lease deal for 198,696 square feet of space at 1341 Enterprise Drive in Romeoville, IL with Goodwill Industries. There is also a commitment to expand into the entire facility aggregating 324,115 square feet by 2023. The other lease deal is with one of North America’s largest wire and cable producers, Southwire Company, for 83,125 square feet of space at 430 Kimberly Drive in Carol Steam, IL.
Duke Realty’s Chicago office completed 6 million square feet of lease renewals, new deals and expansions in 2021. Management has credited the company’s “strategically located, state-of-the-art facilities” and its “reputation as a tenant-focused landlord” for achieving an “incredible milestone” in the Chicago land area.
Demand for logistics infrastructure and efficient distribution networks has been shooting up amid an e-commerce boom, with growth in industries and companies making efforts to improve supply-chain efficiencies. This, in turn, is helping the industrial real estate market to prosper. 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 to enjoy a favorable market environment.
Given Duke Realty’s solid capacity to offer modern, high-quality logistics facilities, it is poised to bank on this trend. Amid favorable fundamentals, Duke Realty is not only experiencing solid leasing activities but also focusing on developing new facilities and securing leases before project completions. DRE has four development projects under construction in the market totaling 2.5 million square feet of additional space.
These include a 1,200,420-square-foot e-commerce fulfillment center for Wayfair LLC at Airport Logistics Center Phase II in Romeoville, IL, a 622,200-square-foot build-to-suit facility for a national home improvement retailer in Bedford, IL, a 370,973-square-foot speculative development in Woodridge, IL and a 299,520-square-foot facility in Bellwood, IL, preleased to a snack food manufacturer.
Duke Realty is witnessing healthy demand not only in the Chicago market but also in other markets. DRE leased 9.5 million square feet of space during the September-end quarter. Tenant retention was 71.5% for the reported quarter and 86.2% after considering the immediate backfills.
Duke Realty currently carries a Zacks Rank #3 (Hold). DRE’s shares have rallied 27.2%, outperforming its industry’s growth of 9.1% over the past three months. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stocks to Consider
Some better-ranked stocks from the REIT sector include Terreno Realty Corporation (TRNO - Free Report) , CubeSmart (CUBE - Free Report) and Rexford Industrial Realty (REXR - Free Report) .
Terreno Realty holds a Zacks Rank of 2 (Buy) at present. Terreno Realty’s 2021 FFO per share is projected to increase 19.4% year over year.
Also, the Zacks Consensus Estimate for TRNO’s 2022 FFO per share has been revised marginally upward in the past two months.
The Zacks Consensus Estimate for CubeSmart’s 2021 FFO per share has moved 2.4% north to $2.10 over the past two months.
Currently, CubeSmart carries a Zacks Rank of 1. CUBE's long-term growth rate is projected at 11.2%.
The Zacks Consensus Estimate for Rexford Industrial’s 2021 FFO per share has moved 1.2% north to $1.63 over the past two months.
Currently, Rexford Industrial carries a Zacks Rank of 2. REXR's long-term growth rate is projected at 12.9%.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.