News Summary
Terreno Realty has acquired an industrial property in Long Island City, Queens, for $16 million. The 36,000 square foot property, fully leased to an insulation distributor until May 2028, highlights the company’s growth strategy centered on acquisitions in coastal markets. This move adds stability to Terreno’s portfolio, with ongoing developments and other acquisitions in Los Angeles supporting its expansion plans. Despite macroeconomic uncertainties, the company’s shares have shown resilience, reflecting positive growth potential within the industrial real estate sector.
New York — Terreno Realty has made a significant move by acquiring an industrial property located in Long Island City, Queens, for $16 million. This acquisition underscores the company’s ongoing strategy centered on growth through acquisitions in key coastal markets.
The newly acquired property is situated at 11-40 Borden Avenue and spans approximately 36,000 square feet on a 1-acre lot. Currently, the property is fully leased to an insulation distributor, with a lease agreement that extends until May 2028. This acquisition provides a stabilized cap rate of 3.9%, contributing positively to Terreno’s portfolio.
The advantageous location of the property is a significant factor in its acquisition. It is conveniently positioned near major transportation routes, including the Queens-Midtown Tunnel and Pulaski Bridge, which are expected to attract potential future tenants seeking proximity to key arteries for logistics and distribution.
In recent months, Terreno Realty has been actively restructuring its investment portfolio. This includes divesting non-core assets while pursuing value-accretive investments that align with its long-term growth strategy. Just a week prior to the Long Island City acquisition, the company purchased another industrial property in Los Angeles, California, for approximately $10 million.
In addition to the recent acquisitions, Terreno Realty has engaged in substantial sales activities. In May 2025, the company sold two properties totaling approximately $114.5 million. Currently, as of May 6, 2025, Terreno Realty has acquisitions worth about $49 million under contract and nearly $75.8 million are under letters of intent, indicating a robust momentum in property investment.
Terreno Realty’s proactive stance is further illustrated by its development activities. The company is currently involved in five properties that are either under development or redevelopment, accounting for approximately 0.8 million square feet of industrial space. As of now, these developments are 48% pre-leased, highlighting a positive trend in tenant interest.
Looking ahead, Terreno Realty has set aside 22.4 acres of land for future development projects, which represent an estimated investment value of approximately $392.8 million. The company’s expansion strategy particularly targets six key coastal U.S. markets: New York City/Northern New Jersey, Los Angeles, Miami, San Francisco Bay Area, Seattle, and Washington, D.C.. These areas exhibit healthy demographic trends and a strong demand for industrial real estate.
Despite the company’s positive growth outlook, there remain ongoing concerns regarding macroeconomic uncertainties and potential tariff risks that could impact the broader real estate market. However, Terreno Realty’s shares have shown resilience, increasing by 4.5% over the last month, outperforming the industry average growth of 2.6%.
In the context of the Real Estate Investment Trust (REIT) sector, other well-rated stocks such as Omega Healthcare Investors and W.P. Carey have received ‘Buy’ ratings from analysts. The Zacks Consensus Estimate for Omega Healthcare’s Funds From Operations (FFO) per share for 2025 has been adjusted upwards by one cent to $3.02, while W.P. Carey’s estimate saw a 1% increase to $4.88.
Through strategic acquisitions and developments, Terreno Realty continues to evolve within the dynamic landscape of industrial real estate, positioning itself for sustained growth and stability in the market.
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