Indianapolis-based Duke Realty Corporation (NYSE: DRE) inked a built-to-suit deal in Ohio with American Showa – a subsidiary of Japanese automotive parts manufacturer, SHOWA Corporation. As per the deal, Duke Realty will construct a 304,560 square foot industrial warehouse for American Showa in Rickenbacker Global Logistics Park (‘RGLP').
RGLP is a master-planned logistics park that is being constructed by Duke Realty in alliance with Columbus Regional Airport Authority (‘CRAA') and Capitol Square, Ltd. The above-mentioned industrial warehouse for American Showa will be placed in the Intermodal North Campus of RGLP and will be close to the Rickenbacker International Airport and Norfolk Southern Intermodal Terminal. The construction of this facility is expected to start this month and deliver in early 2015.
Positioned in Columbus, RGLP is reachable from I-71, I-270, I-70, Highway 23 and Highway 33 and facilitates efficient product delivery to all population centers in the Mid-Atlantic, Southwest, Northeast and Midwest U.S. Notably, the parkways and roadways within RGLP are preferred as Loaded-to-Capacity zones to enable movement of overweight vehicles or loads.
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As a matter of fact, improving automotive purchases and overall consumer spending in recent times is driving the healthy recovery in industrial production. Amid low industrial new construction activity, Duke Realty's abovementioned deal is encouraging as it will help in enhancing its bulk industrial properties portfolio. In addition, the transaction will strengthen the tenant base of this real estate investment trust (REIT) and pave way for top-line growth in the future.
Duke Realty currently carries a Zacks Rank #3 (Hold). Investors interested in the REIT industry may also consider stocks like The GEO Group, Inc. (NYSE: GEO), Terreno Realty Corp. (NYSE: TRNO) and Parkway Properties Inc. (NYSE: PKY). All these stocks sport a Zacks Rank #1 (Strong Buy).
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