Terreno Realty Expands Industrial Presence with New Lease

Terreno Realty Corporation Expands Industrial Footprint

Terreno Realty Corporation (NYSE: TRNO) is making waves in the industrial real estate sector with an exciting new lease announcement. Recently, this company, which specializes in acquiring, owning, and operating industrial properties in key coastal markets of the U.S., revealed it has pre-leased 50% of Building 32 at Countyline Corporate Park Phase IV in Hialeah, Florida. This agreement marks a significant step in Terreno's growth strategy, aligning with broader trends in industrial space demands.

Lease Details and Structure

The newly secured lease spans 82,000 square feet and is set to run for ten years. This property will house an aircraft engine maintenance and repair provider, a growing sector within industrial operations. The lease will initiate upon the completion of the construction and necessary tenant improvements, projected to occur around June 2025.

Building 32 is currently under construction and is designed to meet modern industrial specifications. This 164,000 square foot building will feature a generous clear height of 36 feet, accommodating a range of industrial needs. Situated on an 8.3-acre site, it will provide 53 dock-high loading positions, two grade-level loading areas, and ample parking for 148 vehicles, reinforcing its operational capabilities.

Future Plans for Countyline Corporate Park

Countyline Corporate Park Phase IV is part of a larger 121-acre development that anticipates bringing 2.2 million square feet of state-of-the-art industrial buildings to the Countyline area. Located conveniently near major transportation routes, this development will introduce ten new LEED-certified industrial distribution buildings, complete with a total of 660 dock-high and 22 grade-level loading bays, and parking for 1,875 vehicles. The total projected investment for this ambitious project is around $511.5 million.

By 2027, once both Phases III and IV are fully developed, Terreno Realty Corporation will offer a total of 17 buildings, culminating in a substantial industrial space of approximately 3.5 million square feet. The growth of Countyline Corporate Park signifies not just an expansion for Terreno, but it also responds to the increasing demand for quality logistics and distribution facilities.

Understanding Stabilized Cap Rates

Investors often use stabilized cap rates to evaluate real estate investments. For Terreno, these rates are calculated based on the annualized cash basis net operating income and the total acquisition costs. Total acquisition costs consider various factors, including the initial purchase price, closing costs, and necessary capital expenditures to stabilize the project.

Terreno Realty Corporation Overview

Terreno Realty Corporation has established itself as a leader in the industrial real estate market across six major coastal U.S. markets. Its strategic focus on urban logistics positions it well for future growth in a sector that continues to expand due to e-commerce and other demand drivers. The company operates in top markets such as New York City, Los Angeles, Miami, and Washington, D.C., among others.

As a forward-thinking organization, Terreno Realty Corporation consistently looks to enhance its portfolio while contributing to the industrial landscape of the United States. This recent lease is indicative of their proactive approach in navigating market opportunities effectively.

Frequently Asked Questions

What areas does Terreno Realty Corporation focus on?

Terreno Realty Corporation focuses on six major coastal U.S. markets, including New York City, Los Angeles, Miami, and Washington, D.C.

What is the significance of the new lease in Florida?

The new lease provides a substantial industrial space for an aircraft engine maintenance provider and showcases Terreno's commitment to meeting industrial demand.

When is the lease expected to commence?

The lease for the new industrial facility is expected to commence in June 2025 upon completion of construction and tenant improvements.

What is the entire investment projected for Countyline Corporate Park?

The total projected investment for Countyline Corporate Park Phase IV is approximately $511.5 million.

What is the future outlook for industrial real estate?

The industrial real estate outlook remains positive, driven by growth in e-commerce and increased logistic needs, positioning companies like Terreno favorably.

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