Duke Realty (DRE) Signs 5 Leases In Chicago This September
Zacks Investment Research | Oct 10, 2019 08:18AM ET
Duke Realty Corporation (NYSE:DRE) has been witnessing strong demand for its industrial properties, buoyed by favorable trends in the real estate sector. In fact, the company recently announced that it has signed five leases aggregating 860,296 square feet in September for four of its properties.
The transactions include two full-building leases at the company’s recently-delivered spec properties, a new lease and renewal that enabled another property to achieve full occupancy, as well as another new lease in another building.
Specifically, at Airport Logistics Center, Romeoville, RJW Logistics signed a lease to rent the entire 543,780-square-foot spec building that was unveiled in August. Moreover, Coda Resources leased 990 North Avenue in Glendale Heights — an 183,296-square-foot spec building completed in December 2018.
Additionally, at 375 W. South Frontage Road in Bolingbrook, Battery Systems has entered into a new lease for 17,850 square feet of space, while Corrosion Materials renewed its 17,850-square-foot lease at the property. Further, Duke Realty has bagged a new lease with Black Horse Carriers at 1835 West Jefferson, Naperville, for 97,520 square feet of area.
Per management, the company is witnessing decent demand for its properties in Chicago. Management noted that Duke Realty’s Chicago-metro portfolio consists of modern, strategically-located properties that are appropriate to cater to companies’ needs which are on the lookout for high-efficiency warehouse and distribution space in the city’s high-demand market.
Notably, e-retail continues to play a pivotal role, transforming the way consumers shop and receive their goods. Moreover, services like same-day delivery are gaining traction, and last-mile properties in high-income urban areas are witnessing solid pricing, occupancy and growth in rentals. This is spurring demand for industrial real estate space, thus, benefiting REITs like Duke Realty, Prologis Inc. (NYSE:PLD) , Terreno Realty Corporation (NYSE:TRNO) and PS Business Parks (NYSE:PSB) .
As for Duke Realty, the company’s facilities in major MSA’s and key trucking, rail, air cargo and shipping corridors will likely enable it to enjoy elevated demand for logistics infrastructure amid stable economy and e-commerce boom, thereby driving growth.
Duke Realty currently carries a Zacks Rank #3 (Hold). Over the past six months, the stock has gained 9.5%, outperforming the Zacks Investment Research
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