LibertyProperty Trust’s (LPT - Free Report) industrial facilities are not only grabbing attention from prospective tenants, but also experiencing decent demand from the existing ones.
Liberty announced that it has struck two new leases as well as a renewal lease in the Research Triangle Park (RTP) in Raleigh-Durham. The new tenants will occupy a total of 64,320 square feet of space in two different portfolios of the company.
Per Bryan Blythe, Liberty’s vice president of leasing and development, the company has enjoyed robust leasing activity in its Raleigh-Durham portfolio so far this year. He also noted that Liberty has inked 14 new and renewal leases in the portfolio since January. Subsequently, it has achieved nearly 100% occupancy in the market.
Recently, Silecte LLC entered into a lease agreement for 32,000 square feet of space at 627 Distribution Drive in Liberty’s Keystone Business Park portfolio. Also, an existing tenant — AGS — renewed its 62,400-square-foot lease in the business hub.
Furthermore, an undisclosed tenant has closed another new lease agreement for industrial space in the company’s Imperial Center portfolio. The tenant will absorb 32,320 square feet of space at Regent Place — 1000 Parliament Court.
Notably, leasing activity in the RTP sub-market has been escalating on the back of stellar market fundamentals.
Fundamentals of the industrial real estate remain healthy amid elevating demand stemming from pro-business environment and continued e-commerce boom. This is opening up a number of opportunities for industrial REITs like Prologis Inc. (PLD - Free Report) , DCT Industrial Trust Inc. (DCT - Free Report) , Duke Realty Corporation (DRE - Free Report) and Liberty.
Given its ability to offer premium quality industrial space in upscale locations, Liberty is well placed on the growth trajectory. In fact, the company’s industrial portfolio, spanning 93.4 million square feet of area, had a solid occupancy of 96.3% at the end of the recently-reported quarter. Also, industrial distribution rents flared up 14.8% on renewal and replacement leases signed during the quarter.
Currently, Liberty carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The stock has outperformed its industry year to date, gaining13.3% as against the industry’s rally of 7.3%.
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