Back to top

Image: Bigstock

Duke Realty (DRE) to Build Logistics Facility in California

Read MoreHide Full Article

Duke Realty Corporation recently announced its plan to construct a build-to-suit logistics facility in the Moreno Valley. The property will be situated at the meeting point of Nandina Avenue and Perris Boulevard.

The facility will be located at 24921 Nandina Avenue and comprise 340,010 square feet of space. Construction begins from October and the property is expected to be delivered by September 2019. Notably, Duke Realty had acquired land comprising 14.42 acres of space for this purpose.

Duke Realty has a decent portfolio in Southern California and this development will expand the company’s offerings in the Inland East submarket. Since its entry in the area in 2011, the company has made strategic efforts to expand its offerings in the region through a variety of acquisitions and developments. At present, it has around 10.5 million square feet of logistics facilities in its portfolio, including properties which are under development.

The industrial real estate segment has witnessed robust growth in recent times, owing to a healthy manufacturing environment amid higher consumer spending and recovering job market. The prevalent e-commerce boom has also triggered demand for distribution centres and logistic facilities, which is further driving demand for Industrial space. This is opening up growth opportunities for industrial REITs, including Prologis, Inc. (PLD - Free Report) , Duke Realty, Terreno Realty (TRNO - Free Report) and Liberty Property Trust .

Further, the property’s supreme location will support its occupancy level. Elevated demand in the region, backed by factors such as strong labor pool, huge chunks of space and modest pricing will ensure continued revenues. This is also anticipated to benefit the company and boost its long-term growth prospects.

Also, shares of the company have outperformed the industry, year to date.  In fact, its shares have gained 3.2% against the industry’s decline of 3.1% during the same time frame.



Duke Realty currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Hottest Tech Mega-Trend of All

Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>


Unique Zacks Analysis of Your Chosen Ticker


Pick one free report - opportunity may be withdrawn at any time


Prologis, Inc. (PLD) - $25 value - yours FREE >>

Terreno Realty Corporation (TRNO) - $25 value - yours FREE >>

Published in