Liberty Property Trust LPT, the Malvern, PA-based real estate investment trust (“REIT”), inked a lease agreement with PAE, a government services firm, for 723,291 square feet of industrial space. PAE is likely to occupy the space at 1070 Windham Parkway in Romeoville, IL, by May 2015.
Notably, Liberty Property had purchased the property from home improvement retailer, The Home Depot, Inc. HD, in 2012. This building features 150 loading docks, 30” clear height, excellent visibility on Interstate 55, and an adequate facility for auto and trailer parking. Going forward, this move is expected to benefit the REIT by increasing its occupancy rate more than 95% in the Illinois/Wisconsin Corridor.
On the other hand, PAE has entered the agreement with an intention to operate the Chicago Mail Transport Equipment Service Center (MTESC) as part of its contract award. With the signing of this deal, Chicago MTESC, located in an area of 16.5 acres, will become the largest MTESC in the country. The sufficient trailer parking space offered by Liberty Property will help PAE serve its clients better.
Liberty Property is engaged in development, acquisition, ownership and management of superior office and industrial properties in the U.S. and U.K. Amid growing demand for premium quality industrial space, this lease deal perfectly corresponds with the company’s strategy of concentrating on industrial properties.
Currently, both Liberty Property and Home Depot carry a Zacks Rank #3 (Hold).
Investors interested in the REIT sector may consider stocks like CareTrust REIT, Inc. CTRE and CoreSite Realty Corporation COR. Both these stocks sport a Zacks Rank #1 (Strong Buy).
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