In order to expand its presence and improve its portfolio
DCT Industrial Trust Inc.
), a real estate investment trust (REIT), purchased a 3 building
portfolio in the Tempe/Airport submarket of Phoenix.
Spanning 308,000 square feet, the Class-A buildings have 100%
occupancy. It enjoys easy accessibility to Sky Harbor
International Airport as well as other important transportation
systems. With this portfolio acquisition in the
high-barrier-to-entry submarkets of Phoenix, DCT Industrial's
total Phoenix portfolio aggregates 2.1 million square feet.
We believe that the acquisition will further help DCT Industrial
to capitalize on the growing Phoenix market. This market is
expected to experience a decline in vacancy rates going forward
with the rate of absorption exceeding the construction pace.
DCT Industrial focuses on acquiring, developing, leasing and
managing high-quality bulk distribution and light industrial
properties in key distribution markets in the U.S. and Mexico. As
of Jun 30, 2013, the company owned about 74.9 million square feet
of properties, including 12.3 million square feet managed on
behalf of 4 institutional management partners.
With a larger customer base, an increase in e-Commerce
application and supply chain consolidation, the demand for
logistics infrastructure and efficient distribution networks has
risen. DCT Industrial is poised to benefit from its proficiency
in offering modern distribution facilities through acquisitions
and development projects in strategic infill locations.
The company has a strong customer base of over 800
industry-leading companies such as
ConAgra Foods, Inc.
Ford Motor Co.
). Such a diversified tenant base provides the company a
significant competitive edge over its peers. However, rising
rates remain a concern for its adverse effect on funding cost.
DCT Industrial currently carries a Zacks Rank #4 (Sell).
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