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Duke Realty (DRE) Expands New Jersey Industrial Portfolio
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Duke Realty Corp. recently completed the acquisition of a 3.1 million-square-foot industrial property in New Jersey. The move has helped the company expand its New Jersey industrial portfolio to 5.6 million square feet.
The latest acquired portfolio includes six newly built warehouses and two land sites for future development. Located along the I-95 corridor, the acquired portfolio enjoys proximity to New York City and boasts features suitable for improved product storage and distribution like 36′ clear heights and sufficient automobile and trailer parking.
While the buildings in the acquired portfolio were delivered within the past year, Duke Realty has already started developing a 661,000-square-foot warehouse on one of the acquired sites, 429 Delancy Street in Newark. The company expects to deliver this building by 2018-end. Further, a 194,000-square-foot warehouse has been planned on an acquired parcel at 5 Ethel Boulevard in Wood-Ridge.
Duke Realty’s expansion in New Jersey is a strategic step. The company is focused on enhancing its portfolio in Tier I distribution markets.
In 2007, the company made a foray into the New Jersey market with the acquisition of a former GM plant in Linden. Soon after, the company started the site’s redevelopment. Later on, the company delivered three modern warehouses on the site, which are presently fully leased. In 2013, the company expanded its New Jersey portfolio by acquiring three buildings in Cranbury and Logan Township spanning 1.3 million square feet in total. Again in 2017, the portfolio was enhanced with a 156,256-square-foot building buyout in Teterboro.
Notably, the industrial real estate asset category has grabbed attention due to elevated demand, recovering economy and job market, strengthening e-commerce market and a healthy manufacturing environment. This is opening up growth opportunities for industrial REITs like Prologis, Inc. (PLD - Free Report) , DCT Industrial Trust , Duke Realty and Liberty Property Trust .
Duke Realty had resorted to the sale of sub-urban office assets and medical office buildings in the past, in a bid to transform into a domestic-focused industrial property REIT. In fact, the latest acquisition helped the company in making a fast deployment of a substantial part of its proceeds from its last year’s $3 billion medical office building portfolio sale.
In fact, Duke Realty enjoys ownership and operations of industrial properties spread across nearly 146 million rentable square feet of space. These properties are located across 21 key logistics markets. Nevertheless, large-scale asset dispositions are expected to have a dilutive effect on earnings in the near term. Further, stiff competition and rate hike remain other concerns.
Over the past month, the stock has appreciated 6.2%, outperforming 2.0% growth registered by the industry it belongs to.
A medical advance is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating substantial revenue, and even more wondrous products are in the pipeline.
Cures for a variety of deadly diseases are in sight, and so are big potential profits for early investors. Zacks names 5 stocks to buy now.
Image: Bigstock
Duke Realty (DRE) Expands New Jersey Industrial Portfolio
Duke Realty Corp. recently completed the acquisition of a 3.1 million-square-foot industrial property in New Jersey. The move has helped the company expand its New Jersey industrial portfolio to 5.6 million square feet.
The latest acquired portfolio includes six newly built warehouses and two land sites for future development. Located along the I-95 corridor, the acquired portfolio enjoys proximity to New York City and boasts features suitable for improved product storage and distribution like 36′ clear heights and sufficient automobile and trailer parking.
While the buildings in the acquired portfolio were delivered within the past year, Duke Realty has already started developing a 661,000-square-foot warehouse on one of the acquired sites, 429 Delancy Street in Newark. The company expects to deliver this building by 2018-end. Further, a 194,000-square-foot warehouse has been planned on an acquired parcel at 5 Ethel Boulevard in Wood-Ridge.
Duke Realty’s expansion in New Jersey is a strategic step. The company is focused on enhancing its portfolio in Tier I distribution markets.
In 2007, the company made a foray into the New Jersey market with the acquisition of a former GM plant in Linden. Soon after, the company started the site’s redevelopment. Later on, the company delivered three modern warehouses on the site, which are presently fully leased. In 2013, the company expanded its New Jersey portfolio by acquiring three buildings in Cranbury and Logan Township spanning 1.3 million square feet in total. Again in 2017, the portfolio was enhanced with a 156,256-square-foot building buyout in Teterboro.
Notably, the industrial real estate asset category has grabbed attention due to elevated demand, recovering economy and job market, strengthening e-commerce market and a healthy manufacturing environment. This is opening up growth opportunities for industrial REITs like Prologis, Inc. (PLD - Free Report) , DCT Industrial Trust , Duke Realty and Liberty Property Trust .
Duke Realty had resorted to the sale of sub-urban office assets and medical office buildings in the past, in a bid to transform into a domestic-focused industrial property REIT. In fact, the latest acquisition helped the company in making a fast deployment of a substantial part of its proceeds from its last year’s $3 billion medical office building portfolio sale.
In fact, Duke Realty enjoys ownership and operations of industrial properties spread across nearly 146 million rentable square feet of space. These properties are located across 21 key logistics markets. Nevertheless, large-scale asset dispositions are expected to have a dilutive effect on earnings in the near term. Further, stiff competition and rate hike remain other concerns.
Over the past month, the stock has appreciated 6.2%, outperforming 2.0% growth registered by the industry it belongs to.
Duke Realty has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Investor Alert: Breakthroughs Pending
A medical advance is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating substantial revenue, and even more wondrous products are in the pipeline.
Cures for a variety of deadly diseases are in sight, and so are big potential profits for early investors. Zacks names 5 stocks to buy now.
Click here to see them >>