Duke Realty Corporation
) is gaining solid traction in the Chicago market with North Bay
Distribution Inc. and ALG Direct Inc. recently selecting Duke
Realty industrial buildings in I-55 submarket.
Specifically, Duke Realty inked lease deals for a total of 270,131
square feet of space in two of its industrial properties in the
I-55 submarket with North Bay leasing 198,731 square feet at Park
55. The total building comprises 529,000-square-foot of space.
On the other hand, ALG Direct inked a lease deal at 375 W. South
Frontage Road in Bolingbrook for 71,400 square feet of space in the
187,000-square-foot industrial building.
As a matter of fact, with excellent highway access and vicinity to
the rest of the Chicago metro area and beyond, the industrial
properties in the I-55 submarket are among the top choices of the
warehouse and distribution companies.
The recent deals are a testament to this and these new leases bring
the occupancy level to 96% for the company's overall Chicago
industrial portfolio. The company owns, manages or has under
development around 11.7 million square feet of office, industrial
and healthcare properties in the greater Chicago area. Moreover,
the availability of land banks in strategically important locations
augurs well for Duke Realty's development activities.
Given its operational strength, we believe that the company can
continue its development activities going forward. Of late, the
company has been focusing more on scaling down its suburban office
assets to bolster its bulk industrial business. We expect these
portfolio repositioning efforts to boost this Zacks Rank #2 (Buy)
company's internal growth metrics in the near future.
Investors interested in the REIT industry may also consider stocks
Aviv REIT, Inc.
Parkway Properties Inc.
Terreno Realty Corp.
). All these stocks carry a Zacks Rank #1 (Strong Buy).
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DUKE REALTY CP (DRE): Free Stock Analysis
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