Liberty Property Trust (LPT) disclosed the signing of its first lease deal with WageWorks, Inc. (WAGE) for its Class A office development – Liberty Center at Rio Salado – in Tempe. This deal, which has been sketched prior to the completion of the building, reflects the strong demand for office space in the Phoenix Metropolitan Area.
WageWorks will occupy the entire first floor (76,162 square feet) of Building One, which is a part of Phase I of Liberty Center at Rio Salado. Building One, which will begin to operate from October this year, will comprise seven offices and one industrial building. On the other hand, Phase II of the business park will have a hotel, retail and additional office buildings. Upon completion, Liberty Center at Rio Salado will consist of over 1 million square feet of office, flex, industrial and retail space.
Liberty Property is aiming to expand its presence in the growing office markets of the nation. The Phoenix office market is currently improving, with rising demand for space from the corporate houses. Liberty Property is efficiently capitalizing on this trend and the current deal is, therefore, encouraging.
Recently, this real estate investment trust (:REIT) inked another lease deal with Kawneer Company Inc. for 30,000 square feet of space at Hanover Crossing at New Ridge Road. Notably, Liberty Property continues to make efforts to grow its business in key areas like the Baltimore/Washington Corridor and the Kawneer deal reflects the strong demand for Class A industrial space in that region.
Liberty Property currently carries a Zacks Rank #3 (Hold). Investors interested in the REIT industry may also consider Cousins Properties Incorporated (CUZ) and Public Storage (PSA). Both stocks carry a Zacks Rank #2 (Buy).