Full access to Entrepreneur for $5

Terreno Realty (TRNO) Secures Lease for Property in Gardena

Terreno's (TRNO) latest leasing activities reflect solid demand for its properties from tenants amid healthy fundamentals of the industrial sector.

This story originally appeared on Zacks

Terreno Realty TRNO recently announced the execution of a lease with a global logistics and supply-chain provider for a property in Gardena, CA. The lease for the 114,000 square feet of space will begin upon expiration of the current lease on Jan 31, 2022. Precisely, it will begin on Mar 1, 2022, and expire on Mar 31, 2027.

- Zacks

The industrial REIT has also announced the execution of a lease with the leading bike share provider in New York City for a property in East Williamsburg, Brooklyn. The lease for the 44,000 square feet of space is expected to begin on Sep 1, 2021, and expire in June 2029.

The leasing activities reflect the healthy demand for Terreno’s well-positioned properties. The REIT’s operating portfolio, excluding three properties under redevelopment, was 97.5% leased as of Jun 30, 2021 to 535 tenants, up from 96.1% as of Mar 31, 2021 and 96% as of Jun 30, 2020. Also, its improved land portfolio of 27 parcels, aggregating 97.6 acres, was 98% leased as of Jun 30, 2021, up 10 basis points sequentially.

Amid an e-commerce boom, growth in industries and companies making efforts to improve supply-chain efficiencies, demand for logistics infrastructure and efficient distribution networks has been shooting up. This is aiding the industrial real estate market to prosper.

In addition, apart from the fast adoption of e-commerce, logistics real estate is anticipated to benefit from a likely increase in inventory levels post the global health crisis, offering scope to industrial landlords, including Terreno Realty, Duke Realty DRE, Prologis PLD and Rexford Industrial Realty REXR, among others, to enjoy a favorable market environment.

Terreno Realty is also banking on such scopes and is focused on expanding its portfolio on acquisitions. It targets functional assets at in-fill locations, which enjoy high-population densities and are located near high-volume distribution points.

The company is well poised on the back of these efforts to enhance its portfolio in the six major coastal U.S. markets — Los Angeles, Northern New Jersey/New York City, San Francisco Bay Area, Seattle, Miami and Washington, DC — which display solid demographic trends and witness healthy demand for industrial real estates.

Nevertheless, with the asset category being attractive in these challenging times, there is a development boom in a number of markets. This high supply is likely to intensify competition and curb pricing power.

In the past six months, the company’s shares have gained 15.4%, underperforming its industry's rally of 19.1%.

Zacks Investment Research

Image Source: Zacks Investment Research

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

Zacks Names "Single Best Pick to Double"

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

You know this company from its past glory days, but few would expect that it's poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks' Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.

Free: See Our Top Stock and 4 Runners Up >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report


Prologis, Inc. (PLD): Free Stock Analysis Report


Duke Realty Corporation (DRE): Free Stock Analysis Report


Terreno Realty Corporation (TRNO): Free Stock Analysis Report


Rexford Industrial Realty, Inc. (REXR): Free Stock Analysis Report


To read this article on Zacks.com click here.


Zacks Investment Research