Duke Realty Enjoys Solid Demand for Turnpike Crossing Assets
Duke Realty Corp. DRE has been witnessing solid demand for properties in the Turnpike Crossing industrial park. Notably, the company’s six-building industrial hub has only 36,370 square feet of space available for lease.
Currently, two preleased warehouses — Turnpike Crossing 6717 and 6711 — are under construction. With development of these properties, the 800,200-square-foot master-planned logistics hub the construction of which commenced in 2016, will be completely built out.
For the 161,725-square-foot Turnpike Crossing 6717, a lease has already been signed prior to commencement of its construction. The 96,759-square-foot Turnpike Crossing 6711 is a build-to-suit facility for an e-commerce company. The 36,730-square-foot space available for lease is at the 146,253-square-foot Turnpike Crossing 6729. This rear-load building is located at 6729 Belvedere Road.
Situated at the intersection of Jog Road and Belvedere Road, Turnpike Crossing has a solid advantage, owing to its favorable location and highway accessibility. The site offers direct access to Florida’s Turnpike in addition to I-95, the South Florida ports and the Palm Beach International Airport. Moreover, Duke Realty’s buildings in the park offer latest features that attract customers.
Duke Realty has a solid presence in South Florida, with more than 8 million square feet of industrial properties under its operation or construction. This poises the company well to leverage on the healthy fundamentals in this asset category in the market.
On an overall basis, the industrial real estate asset category has grabbed attention as resilient consumer sentiment, low unemployment level and rising wages are playing key roles in keeping up the industrial and logistics sector’s healthy performance. 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 opening up growth opportunities for industrial REITs, including Prologis, Inc. PLD, Duke Realty, Terreno Realty TRNO and Liberty Property Trust LPT.
Particularly, Duke Realty has resorted to sale of sub-urban office assets and medical office buildings in the past to transform into a domestic-focused industrial property REIT. Moreover, the quick leasing of properties highlights the robust demand in the market for modern and first-class distribution space.
Strategic steps have helped Duke Realty enjoy a solid presence on a nationwide basis, owning, operating or having under development industrial properties comprising approximately 158 million square feet of rentable space. These properties are located in 20 key logistics markets.
However, recovery in the industrial market has continued for long and a whole lot of new buildings are becoming available, leading to higher supply and lesser scope for rent and occupancy growth. Intensifying trade tensions is another concern.
Duke Realty currently carries a Zacks Rank #3 (Hold). Over the past six months, the stock has gained 11.7%, outperforming the industry’s 9% rise. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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