Duke Realty : Continues Deal Streak, Preleases 1.2M SF Speculative Development in High Demand Inland Empire

IRVINE, Calif.- December 14, 2021 - The Southern California office of Duke Realty Corporation (NYSE: DRE), the leading domestic only, pure-play logistics property REIT (Real Estate Investment Trust) in the United States, secured a long-term lease agreement for its 1,203,449-square-foot speculative development in the highly in-demand submarket of Inland Empire East, one of the nation's top industrial markets. Duke Realty has preleased 11 of its last 12 speculative facilities in Southern California.

728 West Rider Street in Perris, California

"Demand for distribution facilities continues at historic highs across the country and breaks records in Southern California driving up rents and driving down the vacancy rate in Inland Empire to less than one percent," said Nancy Shultz, senior vice president of Duke Realty's Southern California operations. "As supply chain challenges continue, we are working diligently and quickly to help alleviate some of the strain for space with our current and planned developments throughout the state."

Duke Realty's most recent long-term lease agreement is with Lecangs LLC, whose parent company, Loctek Ergonomic Technology Corporation (300729:CH), designs and manufactures the branded ergonomic products, Flexispot, sold at major retailers, as well as their own website. Lecangs, a third-party logistics and fulfillment provider serving more than 100 global customers in 2020, will occupy the speculative development at 728 West Rider Street in Perris, California. This lease deal nearly doubles the company's current 1.6 million square feet of distribution space in 15 warehouses across to the U.S, among which, 490,000 square feet are on the West Coast, 210,000 square feet are in the central U.S. and 900,000 square feet are on the East Coast. The new 1,203,449-square-foot speculative development on 55.2 acres is scheduled for completion by the end of 2021.

"E-commerce, retail and logistics companies are scrambling to find space in what is currently an extremely tight market," said Collin Phillips, Duke Realty's vice president of leasing and development in Southern California. "Our strong project pipeline and planned developments provide those companies with modern, state-of-the-art facilities. Working with our broker partners, we are able to identify opportunities and ensure we can meet strict timelines to help companies' secure the space they need for additional inventory and supply chain expansions."

Duke Realty's facility provides Lecangs with 40 feet of clear height, 241 dock doors, 344 trailer parking spaces and 442 auto spaces. The facility is being built to LEED® certification standards - meeting requirements for environmentally sustainable construction and site development, water savings, energy efficiency and construction waste management.

"Since pledging to build our facilities to LEED certification standards, we have invested more than $2 billion to LEED-certified projects¹ - the majority of them right here in Southern California," added Shultz.

Chris DeVries and Ian DeVries from Colliers International together with Jennifer Whelan from AZ Realty & Investment Corp represented the tenant and Chuck Belden, Kyle Kehner, Tim Pimentel, Brice Larson, Phil Lombardo at Cushman and Wakefield together with Duke Realty's Collin Phillips represented Duke Realty.

¹ Duke Realty Green Bond Allocation Reports