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Duke Realty Inks Lease Deal for Grand Lakes 4053 Building

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Industrial REIT Duke Realty Corp. DRE is witnessing decent demand for its properties. The company recently announced signing a lease for Grand Lakes 4053 in Grand Prairie. Particularly, at this 189,200-square-foot warehouse, the company inked a lease deal with the designer, manufacturer and the distributor of sustainable office furniture, Cherryman Industries. The tenant will use the premises for warehouse and distribution.

Grand Lakes is a well-accessible site and experiences solid demand for the superior industrial space. In fact, with its location facing I-30 between Dallas and Fort Worth, the site offers the vast Dallas-Fort Worth population a last-mile access and is suitable as a central hub for the regional distribution networks.

And Duke Realty stays well-poised to capitalize on the growth opportunities as Grand Lakes 4053 is not its only building there. Rather it is the company’s newest building at the Grand Lakes area. The company also developed and owns a 1,060,075-square-foot building — Grand Lakes 3953 — which is fully leased to Ferrara Candy Company. Further, the company recently expanded the 1,037,862-square-foot building — Grand Lakes 4003 — which is entirely leased to Continental Tire Company, APL Logistics and Keystone Automotive Industries.

In fact, Duke Realty already enjoys a solid presence in the Dallas-Fort Worth region, owning, managing or developing more than 16.5 million square feet of industrial properties. The company also boasts strategic land positions available across a sprawling 1.0 million square feet for future development.

Not only in the Dallas-Fort Worth vicinity but also on an overall basis, the industrial real estate asset category has caught notice on the back of high consumer spending, strength in e-commerce market and a healthy manufacturing environment amid a recovering economy. Also, the job market is boosting demand for the same space. This is fueling growth opportunities for the industrial REITs including Prologis, Inc. PLD, Duke Realty, Terreno Realty TRNO and Liberty Property Trust LPT.

Particularly, Duke Realty resorted to the sale of the sub-urban office assets and the medical-office buildings in the past in a bid to transform itself into a domestic-focused industrial property REIT. The company owns and operates around 153 million rentable square feet of the industrial assets across 20 major U.S. logistics markets.

However, with the rising supply of the industrial real estate space, there is lesser scope for a rent hike. Also, any protectionist trade policies will have an adverse impact on economic growth as well as the company’s business in the long term.

Duke Realty currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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