Duke Realty Corp. (DRE) inked a long-term build-to-suit lease deal with Blu Dot – designer and distributor of modern home furnishings – for constructing a bulk warehouse in Gateway North Business Center in Otsego industrial development park. This came as a part of the company’s ongoing industrial portfolio strengthening efforts.
The new to-be-developed building will span 150,064 square foot and will be located on 7.69 acres in Duke Realty’s Otsego industrial development park. Notably, this build-to-suit deal is the company’s third transaction of such kind in the park, besides the deals with Ruan’s and Room & Board. This sums up the total under-construction space in the Otsego industrial development park to over 935,000 square feet.
Strong demand for the Gateway North Business Center among the companies opting for first-class warehouse and distribution space in the region, called for this new industrial development for Blu Dot. Moreover, the strategic location of Gateway North and direct connectivity to Highway 101 and I-94 makes it a much sought-after property in the prime distribution hub of the region.
Of late, Duke Realty seems to be capitalizing on the improving U.S. industrial market fundamentals through a spate of such deals. Last month, the company inked a new deal with B&G Foods Inc. (BGS) for leasing 445,942 square feet of space in Park 840 Logistics Center Building 653 in Lebanon (read: Duke Realty Inks Deal with B&G Foods to Lease Lebanon Asset). Also, Duke Realty disclosed a new industrial development on an 18.1 acre site at 1341 Enterprise Drive in I-55 submarket in Romeoville (read: Duke Realty Boosts Industrial Assets, Develops New Property). Improving fundamentals in the U.S. industrial market are aiding Duke Realty accomplish its portfolio-expansion activities.
Duke Realty currently has a Zacks Rank #3 (Hold). Investors interested in the REIT industry may also consider stocks like Sotherly Hotels Inc. (SOHO) and Government Properties Income Trust (GOV). Both stocks carry a Zacks Rank #1 (Strong Buy).
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