Back to top

Image: Bigstock

Duke Realty (DRE) Secures Lease Agreement With FedEx Ground

Read MoreHide Full Article

Duke Realty Corp. recently secured a long-term lease agreement with FedEx Ground for a new facility at the Miami 27 Business Park 10300. Marking the largest lease deal for Duke Realty’s South Florida office, the move involves the full leasing of the 501,224-square-foot speculative development at 10300 NW 121st Way in Medley, FL to FedEx Ground.

The Miami 27 Business Park, which is a two-building development in Medley, FL, achieved 100% leasing with this move. Also, DRE’s South Florida portfolio is 97% leased, reflecting the solid demand for its strategically located, high-quality facilities in a region that is known for being highly competitive with low vacancy rates. In August 2021, Duke Realty announced the preleasing of the Miami 27 Business Park 10310, which is a 221,984-square-foot facility at 10310 NW 121st Way.

The Miami 27 Business Park has a convenient location next to U.S. Highway 27. The facility enjoys good connectivity to the Florida Turnpike, I-75 and State Road 826, a roadway that provides direct access to the cargo area of the Miami International Airport. Such a convenient location and modern amenities are likely to have driven the demand for this speculative development.

Demand for logistics infrastructure and efficient distribution networks has been shooting up amid an e-commerce boom, with growth in industries and companies making efforts to improve supply-chain efficiencies. This, in turn, is helping the industrial real estate market to prosper. Apart from the fast adoption of e-commerce, logistics real estate is anticipated to benefit from a likely increase in inventory levels, offering opportunities to industrial landlords to enjoy a favorable market environment.

Given Duke Realty’s solid capacity to offer modern, high-quality logistics facilities, it is poised to bank on this trend. Amid favorable fundamentals, Duke Realty is not only experiencing solid leasing activities but also focusing on developing new facilities and securing leases before project completions.

Duke Realty currently carries a Zacks Rank #3 (Hold). DRE shares have rallied 20.3%, outperforming its industry’s growth of 6.4% over the past six months. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Zacks Investment Research
Image Source: Zacks Investment Research

Stocks to Consider

Some key picks from the REIT sector include Prologis, Inc. (PLD - Free Report) , Public Storage (PSA - Free Report) and Extra Space Storage Inc. (EXR - Free Report) .

Prologis holds a Zacks Rank of 2 (Buy) at present. Prologis’ 2022 revenues are expected to increase 8.7% year over year.

The Zacks Consensus Estimate for PLD’s 2022 funds from operations (FFO) per share has been revised 4.3% upward in the past two months to $5.07.

The Zacks Consensus Estimate for Public Storage’s 2022 FFO per share has moved marginally north to $15.28 over the past week.

Currently, Public Storage carries a Zacks Rank of 2. PSA's long-term growth rate is projected at 6.1%.

The Zacks Consensus Estimate for Extra Space Storage’s 2022 FFO per share has moved marginally north to $ 7.85 over the past week.

Extra Space Storage's 2022 revenues are expected to increase 15.2% year over year. Currently, EXR carries a Zacks Rank of 2.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Public Storage (PSA) - free report >>

Prologis, Inc. (PLD) - free report >>

Extra Space Storage Inc (EXR) - free report >>

Published in