Terreno Realty Corporation (TRNO) – an industrial real estate investment trust (:REIT) – recently inked a lease month-to-month extension deal with a fresh produce distribution company. The deal was penned for 60,000 square feet of space at an industrial property in Jessup, Md. and the lease was extended till Dec 31, 2019.
The lease extension transaction is expected to augment Terreno Realty’s strong tenant base and its relationship with existing tenants. Moreover, it will likely prove accretive to the earnings going forward and improve Terreno Realty’s top line.
Terreno Realty owns and operates industrial real estate properties primarily in 6 major coastal markets of the U.S. – 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 actively capitalizing on opportunities to strengthen its foothold in these abovementioned areas through similar agreements with existing tenants.
Last week, Terreno Realty entered into a 10-year lease renewal deal for an entire space (98,745 square feet) at an industrial property in Savage, Md. with one of the leading independent foodservice distributors in the U.S. In addition, it signed a lease extension and expansion deal with another 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 plans to occupy an additional adjacent space of 51,000 square feet at the industrial property.
Terreno Realty currently holds a Zacks Rank #3 (Hold). REITs that are performing better than the company include Simon Property Group Inc. (SPG), Cousins Properties Inc. (CUZ) and Agree Realty Corp. (ADC), all carrying a Zacks Rank #2 (Buy).
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