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Terreno Realty Pre-Leases 100% of Building 36, Sees Strong Demand

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Key Takeaways

  • TRNO fully pre-leases Building 36 after securing two industrial deals in Countyline Corporate Park.
  • The new and expanded leases align with TRNO's 2027 project timeline and boost Phase IV momentum.
  • TRNO's Q3 portfolio stayed highly leased, with strong rent gains and solid tenant retention.

Terreno Realty Corporation (TRNO - Free Report) recently announced the pre-leasing of 76,000 square feet in Countyline Corporate Park, Phase IV, Building 36. The lease is set to commence upon completion of the building and tenant build-out for a manufacturer and distributor of plantain products. The lease under consideration will last from the first quarter of 2027, expiring in July 2037.

Also, an existing 108,000-square-foot pre-lease with an international logistics management company specializing in freight forwarding and consolidating services has been expanded by 29,000 square feet. This lease is expected to commence in the first quarter of 2027 and expire in June 2037.

The above two leases bring Building 36 to 100% leased status. It highlights strong demand for industrial assets.

Located adjacent to TRNO’s Countyline Corporate Park Phase III, Phase IV is a 121-acre project with 2.2 million square feet of industrial distribution buildings in Miami. With an expected completion time in 2027 at an investment volume of around $511.5 million, the site will have amenities for 655 dock-high and 23 grade-level loading positions and a parking facility for 1,875 cars.

TRNO’s Q3 2025 Leasing Details

The above leases indicate solid demand for TRNO’s industrial properties. The company's healthy leasing activity is evident in its performance in the third quarter of 2025. Its operating portfolio was 96.2% leased as of Sept. 30, 2025. TRNO’s same-store portfolio of 14.1 million square feet was 98.6% leased as of Sept. 30, 2025. For the company’s improved land portfolio of 44 parcels spanning 146.4 acres, the leased rate was 93.1% as of Sept. 30, 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 third quarter of 2025 climbed 17.2%. Moreover, the tenant retention ratio was 68.7% 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 might delay their decision-making with respect to leasing. This is a concern for the company.

Shares of this Zacks Rank #2 (Buy) company have gained 7.1% over the past three months compared with the industry’s upside of 0.2%.

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Other Stocks to Consider

Some other top-ranked stocks from the broader REIT sector are Digital Realty Trust (DLR - Free Report) and W.P. Carey (WPC - Free Report) , each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for DLR’s 2025 FFO per share is pegged at $7.35, which indicates year-over-year growth of 9.5%.

The Zacks Consensus Estimate for WPC’s full-year FFO per share is pinned at $4.92, which calls for an increase of 4.7% from the year-ago period.

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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