We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Gladstone Commercial Corporation (GOOD - Free Report) recently clinched a lease expansion and extension at an industrial property in Raleigh, NC, with Sumitomo Electric Lightwave Corp. The move is likely to help the company secure steady cash flows from the property for a decent period.
Notably, Sumitomo previously occupied 93,931 square feet of space at this property. However, with the lease expansion, the company will now occupy 123,574 square feet, which represents the entire building. The move led to no downtime at the building. In this building, which was acquired in 2007, Sumitomo first leased space in 2015.
Moreover, the lease has been extended for additional five years, through Dec 31, 2032. Sumitomo, which deals in optical fiber technologies, uses the property for manufacturing. Several customers use Sumitomo’s fiber optic cables for data-center, enterprise and communication networks. This lease extension with a credit tenant, therefore, provides revenue visibility over a long term.
Buzz Cooper, executive vice president and head of the south central region for Gladstone Commercial noted, "We have a strong relationship with Sumitomo as they have expanded their footprint in our building multiple times. As a result, we have a credit tenant occupying 100% of our well-configured industrial building in a target market with a long-term lease in place."
Notably, the industrial asset class has been in the limelight for showing resilience amid the pandemic with low vacancy rates, high asking rents and robust rent collections. Apart from the fast adoption of e-commerce, the industrial real estate space is anticipated to gain traction over the long run from a likely rise in the inventory levels of companies as a precaution for any supply-chain disruptions. This, in turn, will likely keep supporting landlords like Gladstone Commercial, Prologis (PLD - Free Report) , Duke Realty Corp. and Terreno Realty Corporation (TRNO - Free Report) to enjoy a favorable market environment. Nevertheless, surplus supply is a concern for the industrial real estate market.
Gladstone Commercial’s rent collections have also been strong. In its business update released in February, the company noted that approximately 98% of the February cash base rents and January cash base rents have been paid and collected.
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Image: Bigstock
Gladstone Commercial (GOOD) Inks Lease Expansion & Extension
Gladstone Commercial Corporation (GOOD - Free Report) recently clinched a lease expansion and extension at an industrial property in Raleigh, NC, with Sumitomo Electric Lightwave Corp. The move is likely to help the company secure steady cash flows from the property for a decent period.
Notably, Sumitomo previously occupied 93,931 square feet of space at this property. However, with the lease expansion, the company will now occupy 123,574 square feet, which represents the entire building. The move led to no downtime at the building. In this building, which was acquired in 2007, Sumitomo first leased space in 2015.
Moreover, the lease has been extended for additional five years, through Dec 31, 2032. Sumitomo, which deals in optical fiber technologies, uses the property for manufacturing. Several customers use Sumitomo’s fiber optic cables for data-center, enterprise and communication networks. This lease extension with a credit tenant, therefore, provides revenue visibility over a long term.
Buzz Cooper, executive vice president and head of the south central region for Gladstone Commercial noted, "We have a strong relationship with Sumitomo as they have expanded their footprint in our building multiple times. As a result, we have a credit tenant occupying 100% of our well-configured industrial building in a target market with a long-term lease in place."
Notably, the industrial asset class has been in the limelight for showing resilience amid the pandemic with low vacancy rates, high asking rents and robust rent collections. Apart from the fast adoption of e-commerce, the industrial real estate space is anticipated to gain traction over the long run from a likely rise in the inventory levels of companies as a precaution for any supply-chain disruptions. This, in turn, will likely keep supporting landlords like Gladstone Commercial, Prologis (PLD - Free Report) , Duke Realty Corp. and Terreno Realty Corporation (TRNO - Free Report) to enjoy a favorable market environment. Nevertheless, surplus supply is a concern for the industrial real estate market.
Gladstone Commercial’s rent collections have also been strong. In its business update released in February, the company noted that approximately 98% of the February cash base rents and January cash base rents have been paid and collected.
Gladstone Commercial currently carries a Zacks Rank #3 (Hold). The stock has gained 8.2% compared with the industry’s rally of 4.6% in the past six months. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>