Jim Connor, chairman and CEO of Duke Realty, sat down with Matthew Bechard from Nareit to discuss the industrial real estate market as part of the REIT Week 2018 Investor Conference.
“Rent growth in the industrial sector has been really strong over the last few years,” said Connor. “In the first quarter of this year, we grew our rents 12% on a cash basis and 25% on a gap basis. Those are really strong numbers that speak to the strength of the real estate market across the U.S.”
Connor went on to talk about how Duke Realty redeployed funds from dispositions to purchase industrial properties in high-barrier, Tier 1 markets across the country. He also explained that Duke Realty has optimized its portfolio to position itself as one of the nation’s leading industrial REIT.
“Our development pipeline is as strong as it’s ever been. We’ve got about $850 million (of property) under development—that’s about 11 million square feet across the country right now—and it’s 57% pre-leased,” said Connor. “It’s a much better risk profile for us than in the previous cycle. So the development business is very good.”
Learn more about the direction of Duke Realty and the current climate of the nation’s industrial real estate market by checking out the full interview above.