DCT Industrial Trust (DCT - Free Report) announced the acquisition of a 301,000-square-foot building in northwest submarket of Cincinnati in an off-market transaction. This move reflects the company’s strategic effort of expansion in key industrial markets, like that of Cincinnati.
The building was 60% occupied upon acquisition and presently, Mike Lowe and Doug Whitten of CBRE, are dealing with the lease marketing of the remaining 121,000 square feet of the building. Notably, there are ESFR sprinklers and 24’–28’ clear height, together with an additional land next to the building, which can be utilized for expansion, trailer parking as well as outside storage.
Cincinnati is a robust industrial market in the nation and has a vacancy rate of 4.7%, per CBRE Research. Therefore, the buyout offers DCT Industrial solid scope to leverage on the healthy market fundamentals and grow its top line. The company specializes in bulk distribution and light-industrial properties in high-volume distribution markets in the U.S. The company owned interests in around 72.0 million square feet of properties leased to about 900 customers, as of Jun 30, 2016.
In fact, in the industrial real estate market, demand for space has been pretty much high. This is because amid economic expansion, e-commerce boom and heightened urbanization, companies have been shifting their focus toward services like same-day delivery and other such options. This is, in turn, propelling demand for warehouse distribution facilities.
Further, with a larger customer base, companies are opting for supply-chain consolidation, resulting in greater demand for logistics infrastructure and efficient distribution networks. Thus, it is creating scope for the industrial REITs, like DCT Industrial, Prologis, Inc. (PLD - Free Report) , Terreno Realty Corp. (TRNO - Free Report) and Liberty Property Trust (LPT - Free Report) , to flourish.
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