San Francisco-based Terreno Realty Corporation (TRNO) recently announced the inking of a lease renewal deal with an existing tenant, which is one of the leading independent foodservice distributors in the U.S. This industrial real estate investment trust (:REIT) entered into a 10-years deal for an entire space (98,745 square feet) at an industrial property in Savage, Md.
The lease renewal transaction is expected to augment Terreno Realty’s strong tenant base and boost its relationship with existing tenants. Moreover, it will likely prove accretive to the earnings going forward and improve the company’s top line.
Terreno Realty owns and operates industrial real estate properties primarily in 6 major coastal markets of the U.S. These include the high barriers-to-entry markets of Los Angeles, Northern New Jersey, San Francisco Bay Area, Seattle, Miami and Washington D.C. Lately, Terreno Realty has been active on capitalizing on opportunities to strengthen its foothold in these areas.
Recently, Terreno Realty purchased an industrial property in Medley, Fla. for roughly $5.1 million. The acquired property comprises 1 industrial building that spans 49,000 square feet across 5.4 acres. It also represents the company’s 10th building in Miami-Dade County and is fully leased to a single tenant.
Also, earlier this week, Terreno Realty signed a lease extension and expansion deal with an existing tenant for an industrial property in Commerce, Calif. As per the deal, the tenant company will extend the lease period for its currently occupied space of 65,000 square feet for 26 months. In addition, it also plans to occupy an additional adjacent space of 51,000 square feet at the industrial property. The expiration date for the combined leased space of 116,000 square feet is Mar 31, 2018.
Terreno Realty currently holds a Zacks Rank #3 (Hold). However, a number of other REITs that are performing better and worth a look are Omega Healthcare Investors Inc. (OHI), Ryman Hospitality Properties Inc. (RHP), Sabra Health Care REIT Inc. (SBRA), all carrying a Zacks Rank #1 (Strong Buy).
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