Terreno Realty Corporation (TCO) recently announced that it has leased approximately 166,000 square feet of space at its industrial building in Miami Lakes, Florida. The lease includes an option of extending it for an additional 24,000 square feet within 13 months. As of December 31, 2011 the facility is expected to be approximately 94% leased.
Presently, Terreno Realty is in the process of renovating the building. The major changes in the existing manufacturing facility include new loading positions, roof and lighting along with renovation of the offices and a new truck court.
Terreno Realty recently acquired an industrial property in Hayward, California, for approximately $7.6 million. The strategic move on the company’s part is aimed at enhancing the quality of its portfolio.
San Francisco-based Terreno Realty owns and operates industrial real estate properties primarily in six major coastal markets of the U.S. These include the high barrier-to-entry markets of Los Angeles, Northern New Jersey/New York City, San Francisco Bay Area, Seattle, Miami and Washington D.C./Baltimore.
Each of the locations where Terreno Realty has a significant presence is characterized by a well-established transportation network – seaports, airports, highways and railways that are essential for the swift distribution of goods. In addition, available land in these markets is scarce, resulting in steep barriers for the development of new and competing properties.
Terreno Realty currently retains a Zacks #3 Rank, which translates into a short-term Hold rating. We are also maintaining our long-term Neutral recommendation on the stock. One of its competitors, DCT Industrial Trust Inc (DCT) has a Zacks #2 Rank, which translates into a short-term Buy rating.