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Is Terreno Realty's Hialeah Expansion Bolstering Its Industrial Edge?

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Key Takeaways

  • Terreno Realty is developing a 220,000-sq-ft building at Countyline Corporate Park Phase IV.
  • The project targets a 6% stabilized cap rate and supports cash-flow growth in a key market.
  • Past Countyline deliveries have leased well, aided by Miami's tight industrial availability.

Terreno Realty (TRNO - Free Report) is pushing ahead with another phase of growth in South Florida, starting the development of Building 35 at Countyline Corporate Park Phase IV in Hialeah. 

The 220,000-square-foot industrial distribution building carries an estimated investment of $55.5 million and is projected to deliver a stabilized cap rate of 6.0%. This addition is expected to support Terreno Realty’s cash-flow expansion in one of its strongest markets by deepening its cluster of modern logistics assets.

The project sits within Countyline Corporate Park, a redevelopment that has quickly become one of Miami’s most active industrial corridors. The park is adjacent to Florida’s Turnpike and the southern end of I-75, offering tenants an advantageous location with quick routes. 

Terreno Realty has been scaling its footprint in this region for years, and Building 35 is part of Phase IV, which is expected to bring the phase’s total to ten LEED-certified industrial distribution buildings across close to 2.2 million square feet. When combined with Phase III, Terreno Realty will have 17 industrial distribution buildings and 3.5 million square feet.

This site has also become a proving ground for tenant demand. Countyline’s buildings feature high clear heights, functional loading layouts and abundant parking, attributes suited for modern distribution needs. Past deliveries at the park have leased well, supported by Miami’s tight industrial availability and the region’s importance as a gateway for trade and last-mile distribution. As Terreno Realty adds scale, it strengthens its ability to attract a broader mix of logistics and e-commerce users.

TRNO: In a Nutshell

Terreno Realty’s latest quarterly update shows that it has ample balance-sheet capacity to support this development cycle. With lighter revolver use and minimal near-term maturities, the company enters this project from a position of financial stability. That flexibility allows Terreno Realty to pursue development that enhances long-term cash growth without stretching leverage.

Altogether, the Hialeah project underscores Terreno Realty’s strategy — build high-quality, infill logistics clusters in markets where demand is deep and supply is limited. Countyline continues to be a strong example of that playbook and the latest building suggests that Terreno Realty is far from done growing its Miami presence.

Shares of this Zacks Rank #2 (Buy) company have gained 5.7% over the past three months compared with the industry’s upside of 1.1%.

 

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Other Stocks to Consider

Some other top-ranked stocks from the broader REIT sector are VICI Properties (VICI - Free Report) and W.P. Carey (WPC - Free Report) . Both VICI Properties and W.P. Carey carry 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 VICI Properties’ 2025 FFO per share is pegged at $2.37, suggesting a 4.9% year-over-year increase.

The Zacks Consensus Estimate for W.P. Carey’s 2025 FFO per share is pegged at $4.92, calling for a year-over-year rise of 4.7%.

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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