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Terreno Realty Executes Lease in New Jersey, Sees Healthy Demand

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Key Takeaways

  • Terreno Realty executed an 81,000-sq-ft lease in Avenel, NJ, starting June 30, 2025.
  • The lease with a third-party logistics provider runs through November 2030, highlighting tenant confidence.
  • TRNO acquires, owns and operates industrial real estate in six major coastal U.S. Markets.

Terreno Realty (TRNO - Free Report) recently announced the execution of an 81,000 square foot lease in Avenel, NJ. The lease commenced on June 30, 2025, and is scheduled to expire in November 2030. The lessee of the agreement is a provider of third-party logistics.

TRNO, which acquires, owns and operates industrial real estate in six major coastal U.S. markets, has been experiencing healthy demand for its properties from both new and existing tenants.

Apart from the above lease, last week, this real estate investment trust (REIT) announced the execution of a 103,000 square foot lease in Redondo Beach, CA, with an in-space mobility provider.

TRNO’s Q1 2025 Leasing Details

TRNO is experiencing healthy leasing activity, as evident in its performance in the first quarter of 2025. Its operating portfolio was 96.6% leased to 663 tenants as of March 31, 2025. TRNO’s same-store portfolio of 15.6 million square feet was 97.4% leased as of March 31, 2025. For the company’s improved land portfolio of 47 parcels spanning 150.6 acres, the leased rate was 95.1% as of March 31, 2025.

Terreno Realty was able to lock in higher rents on new and renewed leases during the quarter. The cash rents on new and renewed leases commencing during the first quarter of 2025 climbed 34.2%. Moreover, the tenant retention ratio was 71.7% for the operating portfolio.

TRNO: In a Nutshell

With a solid operating platform, a healthy balance sheet position and strategic expansion moves, TRNO seems well-positioned to capitalize on long-term growth opportunities. However, amid macroeconomic uncertainty and geopolitical issues, customers remain focused on cost controls and delay their decision-making with respect to leasing. This is a concern for the company.

Over the past three months, shares of this Zacks Rank #3 (Hold) company have lost 10.4% compared with the industry’s decline of 0.7%.

 

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Stocks to Consider

Some better-ranked stocks from the broader REIT sector are Uniti Group (UNIT - Free Report) and CareTrust REIT (CTRE - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for UNIT’s 2025 FFO per share stands at $1.50, indicating an increase of 11.1% year over year.

The Zacks Consensus Estimate for CTRE’s 2025 FFO per share is pegged at $1.81, indicating an increase of 20.7% year over year.

Note: Anything related to earnings presented in this write-up represents FFO, a widely used metric to gauge the performance of REITs.


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