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Duke Realty (DRE) Finalizes Lease Deal for Industrial Park

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Duke Realty Corporation recently announced that Legacy Scenic & Productions (Legacy) has signed a lease for 27,044 square feet of space in TransDulles Center 22815. The TransDulles Center is Duke Realty’s industrial property, situated at Route 28 and Sterling Boulevard in Sterling, VA.

Legacy Scenic & Productions is engaged in the fabrication and installation of scenic displays and set designs. The above mentioned deal marks 100% occupancy of the 126,841-square-foot industrial facility. In addition, the move reflects Duke Realty’s prudent asset selection technique and active leasing activities.    

The above mentioned lease is also a strategic fit for Legacy, as the facility is located close to the airport. In fact, with ease of transportation and sound connectivity to highways, this property is crucial for tenants interested to rent industrial space.

Other than its prime location, the industrial building offers a number of advantages to its tenants. Particularly, the TransDulles Center is part of an industrial and office park, spanning 1 million square feet. The arena encloses two office properties and 14 industrial buildings.

Moreover, three new data centers will soon be unveiled in the industrial park. Presently under construction, these data centers will cover 446,811 square feet of the property. Such key facilities are anticipated to enhance the property and drive solid demand for space.   

Notably, Duke Realty has been making concerted efforts to simplify the business model and turn it into a leading domestic pure play industrial REIT. In line with this, in May 2017 the company inked a deal with a subsidiary of Healthcare Trust of America, Inc. to sell its medical office business and portfolio, for $2.8 billion.

Duke Realty currently carries a Zacks Rank #3 (Hold). Over the past 30 days, the company’s full-year 2017 funds from operations (FFO) per share estimate inched up 1.6% to $1.22, while the third-quarter 2017 estimate remained unchanged at 29 cents.

Furthermore, Duke Realty’s shares have rallied 11.2%, outperforming 4.7% growth recorded by its industry, year to date.




Stocks to Consider

A few better-ranked stocks in the REIT space include Getty Realty Corporation (GTY - Free Report) , Seritage Growth Properties (SRG - Free Report) , and Communications Sales & Leasing, Inc. (UNIT - Free Report) .

While Getty Realty and Seritage sport a Zacks Rank #1 (Strong Buy), Communications Sales & Leasing carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Over the past 30 days, Getty Realty’s 2017 FFO per share estimates moved up 7.8% to $1.94.

Over the past 30 days, Seritage’s 2017 FFO per share estimates inched up 0.5% to $2.01.

Over the past 30 days, Communications Sales & Leasing’s 2017 FFO per share estimates climbed 14.4% to $2.54.

Note: All EPS numbers presented in this write up represent funds from operations (“FFO”) per share. FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.

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