Monmouth Real Estate (MNR) Buys Industrial Asset In Florida

Monmouth Real Estate Investment Corporation (NYSE:MNR) disclosed the acquisition of an industrial building in the Orlando, FL MSA for $37.78 million. This new class-A facility is net-leased for 15 years to FedEx (NYSE:FDX) Ground Packaging System, Inc.

Spanning 310,922 square foot of space, this built-to-suit distribution center is situated on around 47 acres at 5000 North Ridge Trail, Davenport. Its acquisition by Monmouth Real Estate seems a strategic fit for its preferable location right off of Interstate 4. It is adjacent to the Walmart’s recently built two large e-commerce fulfilment centers, spanning a total 2.35 million square feet of space.

Amid an e-commerce boom and heightened urbanization, retailers are shifting their strategy toward services like same-day delivery and other such options, propelling demand for distribution facilities. With a larger customer base, companies are opting for supply-chain consolidation, resulting in greater demand for logistics infrastructure and efficient distribution networks, thereby creating scope for industrial REITs.

In fact, per a CBRE Group Inc. (NYSE:CBG) study, the industrial market is on its lengthiest stretch of recovery, with availability rates declining for the 25th straight quarter to 8.8% in Q2, the lowest since mid-2001.

This is expected to provide enough scope to Monmouth Real Estate to capitalize that specializes in single-tenant, net-leased industrial properties. Its portfolio consists of 98 properties situated in 30 states, encompassing a total of about 15.7 million rentable square feet.

Monmouth Real Estate currently has a Zacks Rank #3 (Hold). Investors interested in the REIT industry may consider stocks like CoreSite Realty Corporation (NYSE:COR) and Gramercy Property Trust Inc. (NYSE:GPT) . Both the stocks holds a Zacks Rank #2 (Buy).