Duke Realty (DRE) Preleases Full Facility in Miami 27 Business Park
Amid demand spike for its well-located industrial spaces in the South Florida, Duke Realty (DRE) secures lease with a consumer products company, in tu...
Duke Realty Corp. DRE is witnessing solid demand for its well-located, modern, convenient logistics space in South Florida. Recently, this industrial REIT secured a long-term lease deal with a consumer products company for 61,191 square feet of logistics space in a 221,984-square-foot facility within the Miami 27 Business Park.
With this, the company has achieved 100% prelease for the facility, which is referred as Building 2 in the Miami 27 Business Park, highlighting the robust demand. The facility, still under construction, is scheduled for completion in September 2021.
With the REIT’s South Florida in-service portfolio being currently 99% leased and Miami properties being 100% leased, the company commenced speculative development to bank on the favorable market conditions as reflected by the rising demand and limited supply of newer, larger distribution warehouses.
In fact, Duke Realty’s Miami 27 Business Park is a two-building development in Medley, FL. The other building that is referred as Building 1 is a 501,224-square-foot facility on 23.3 acres at 10300 NW 121st Way. This Building 1 is slated for completion in fall 2021.
Being immediately adjacent to U.S. Highway 27, with convenient connectivity to the Florida Turnpike, I-75, and State Road 826 that offers direct access to the cargo area of Miami International Airport, the speculative development seems to have grabbed tenants’ attention, leading to one of the building already achieving 100% prelease.
Demand for logistics infrastructure and efficient distribution networks has been shooting up amid e-commerce boom, growth in industries and companies making efforts to improve supply-chain efficiencies, in turn, aiding the industrial real estate market to prosper. Apart from the fast adoption of e-commerce, the logistics real estate is poised to benefit from an increase in inventory levels post the global health crisis, opening up possibilities for industrial landlords, including Duke Realty, Prologis PLD, Terreno Realty Corporation TRNO and Rexford Industrial Realty, Inc. REXR, to enjoy a favorable market environment.
With a robust pipeline of development, both build-to-suit and speculative, as well as an active pipeline of build-to-suit prospects, Duke Realty is well poised to enhance its presence in Tier 1 markets. The company’s shares have gained 24.8%, outperforming its industry’s rally of 19.2% over the past six months.
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However, 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 fuel competition and curb pricing power.
Duke Realty currently carries 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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