Riding high on the industrial portfolio strengthening trajectory, Duke Realty Corporation ( DRE ) disclosed a new industrial development on an 18.1 acre site at 1341 Enterprise Drive in I-55 submarket in Romeoville. The construction is expected to start this month and delivery is slated in Feb 2015.
The new to-be-developed building, spanning 324,115 square foot, will be located to the south of an entrance ramp to I-55, which is the key transportation corridor between Chicago and St. Louis. Notably, this speculative development will be on the east side of I-55 near Crossroads Business Park and Park 55, in which the company has 11 industrial buildings.
Strong demand of the I-55 submarket among the companies opting for first-class warehouse and distribution space in the region, called for this new industrial development by Duke Realty. Moreover, the strategic location and connectivity to important transportation networks makes it a much sought-after property in the prime distribution hub of the region. In fact, Duke Realty currently has around 13.3 million square feet of office, industrial and healthcare properties in the greater Chicago area.
Of late, Duke Realty seems to be capitalizing on improving U.S. industrial market fundamentals. Accordingly, most recently, the company in a joint venture with Browning Investments disclosed the development of a new industrial building in AllPoints Midwest, which will be called AllPoints Midwest Building 6, in the Indianapolis region (Read: Duke Realty, Browning to Build AllPoints Midwest Building 6 ). Such efforts are poised to boost the internal growth metrics of this real estate investment trust (REIT) in the near future.
Duke Realty currently carries a Zacks Rank #3 (Hold). Investors interested in the REIT industry may also consider stocks like W. P. Carey Inc. ( WPC ), Ashford Hospitality Trust, Inc. ( AHT ) and Government Properties Income Trust ( GOV ). All three stocks carry a Zacks Rank #1 (Strong Buy).