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Duke Realty (DRE) Inks 3 Leases at Greenfield North Park

Zacks Equity Research

Duke Realty Corp. DRE has been witnessing solid demand for its industrial real estates from new and existing customers. In fact, during the third quarter, the company inked three leases at Greenfield North Business Park, located at Garner, NC.

The deals include a renewal and expansion at Greenfield North 900 as well as new leases at Greenfield North 800 and Greenfield North 900.

Specifically, the company secured a new lease with Lanter Delivery Systems for 61,117 square feet of space at 800 Greenfield North Parkway. Further, at 900 Greenfield North Parkway, it signed a new 17,000-square-foot lease with Telerent Leasing Corporation as well as a renewal and expansion with Colony Tire Corporation for an aggregate of 42,635 square feet.

Notably, Greenfield North is Duke Realty’s master-planned industrial park consisting of six buildings. Moreover, 800 Greenfield North Parkway is a 122,006-square-foot building, while 900 Greenfield North Parkway spans 128,535 square feet. The campus is located at the interchange of I-40 and Highway 70. Further, it is the only rail-served industrial park in the Raleigh region. This strategic location and close proximity to the I-440 Beltline, downtown Raleigh and RDU Airport continue to attract tenants to this industrial park.

In fact, the company enjoys a solid tenant roster at the property, with space rented out to leading firms like Atlantic Tire Distributors, Mattress Firm, Crown Equipment Corporation, the North Carolina Department of Transportation, Butterball, Mohawk and Golden State Foods.

Further, two development sites at the campus provide the company an opportunity to leverage on the increasing demand for industrial space, thereby unlocking additional value. Notably, e-retail continues to play a pivotal role, transforming the way consumers shop and receive their goods. Moreover, 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 spurring demand for industrial real estate space, thus, benefiting REITs like Duke Realty, Prologis Inc. PLD, Terreno Realty Corporation TRNO and PS Business Parks PSB.

Duke Realty currently carries a Zacks Rank #3 (Hold). Over the past three months, the stock has gained 8.8%, outperforming the industry’s 7% rise. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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.

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Duke Realty Corporation (DRE) : Free Stock Analysis Report
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