Duke Realty Corp. (DRE) disclosed that it has been chosen by FedEx Trade Networks, the freight forwarding wing of FedEx Corp. (FDX), for a build-to-suit project at Camp Creek Business Center in East Point, GA. The construction is expected to complete in August this year.
In particular, Duke Realty will construct a 77,100 square feet building for FedEx Trade Networks, which will be used by the latter as a distribution and sales center. Accordingly, FedEx Trade Networks penned a long-term lease deal with this commercial real estate investment trust (REIT) to occupy the project upon completion. As a matter of fact, this build-to-suit facility at Camp Creek Business Center includes a 15,000 square feet office space.
Situated south of Atlanta and near Hartsfield-Jackson International Airport, Camp Creek Business Center is a 400-acre, mixed-use business park. The property, which is about 3 million square feet developed to date, is a prime business hub of the region. It boasts a diversified cluster of well-known tenants such as Jaguar Land Rover North America of Tata Motors Limited (TTM), ADT Security Services and Dick's Sporting Goods Inc. (DKS).
We expect this deal to strengthen Duke Realty’s ties with its clients and bode well for top-line growth. As a matter of fact, the company has made concerted efforts to lower its suburban office assets as the fundamentals of this market remain weak. On the other side, the company is focused on enhancing its bulk industrial properties and reached its goal of 60% for this segment’s investment in 2013. The above-mentioned deal will further boost Duke Realty’s industrial assets portfolio base.
Duke Realty currently holds a Zacks Rank #3 (Hold).
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