Liberty Property Trust (LPT) disclosed that it has inked a lease agreement with Advertising Resources, Incorporated at 456 International Parkwayin Minooka, IL. In particular, Liberty Property leased 456,479 square feet of space in this building, which is located in Liberty Business Center Minooka.
Liberty Business Center Minooka, a 212 acres industrial development, is located near the Intermodal and conveniently connected to I-80. The company has additional sites in the park, assigned for future developments. Notably, Liberty Business Center is one of the major assets of Liberty Property in the Chicago/Milwaukee corridor, where the company owns around 50 buildings, as of now.
We are encouraged by this lease deal as it depicts solid demand for Liberty Property’s assets and the company’s strategic move to leverage on the growing industrial market fundamentals. Particularly, amid a larger customer base and rise in e-Commerce application and supply chain consolidation, there is an increasing demand for high-quality facilities in premier U.S. locations.
Alongside, this real estate investment trust (REIT) is focused on enhancing the quality of its portfolio through a spate of repositioning deals. Earlier last month, the company disclosed the commencement of the development of eight industrial projects in third-quarter 2014.
Although such deals bode well for long-term growth, it involves significant upfront operating expenses and drags on the margin, thereby leading to a dilution effect on the near-term earnings.
Liberty Property currently carries a Zacks Rank #4 (Sell). Investors interested in the REIT industry may consider stocks like Cousins Properties Inc. (CUZ), DCT Industrial Trust Inc. (DCT) and Duke Realty Corp. (DRE). All these stocks have a Zacks Rank #2 (Buy).
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