Gladstone Commercial Corporation Executes 7-Year, 2-Month Lease at Industrial Property in Taylor, Pennsylvania
Gladstone Commercial (Nasdaq: GOOD) has signed a 7-year, 2-month lease with Hub Group (Nasdaq: HUBG) for its 966,753 square foot industrial building in Taylor, Pennsylvania. The lease begins on July 1, 2024, and ensures full occupancy of the property, which was acquired by Gladstone in 2014. Hub Group, a major third-party logistics provider, will occupy the entire building. Executives from Gladstone Commercial emphasized the significance of this lease in showcasing the quality of their industrial portfolio and meeting tenant demand efficiently.
- 7-year, 2-month lease signed ensuring long-term occupancy.
- Lease with Hub Group, a leading third-party logistics provider.
- Full occupancy achieved with no downtime.
- Property was acquired in 2014, demonstrating long-term investment.
- No financial terms disclosed, limiting investor insight into revenue impact.
Insights
The recent lease agreement between Gladstone Commercial Corporation and Hub Group reflects positively on Gladstone's portfolio management and market positioning. Securing a 7-year lease with a major third-party logistics provider like Hub Group ensures long-term occupancy and generates stable revenue streams, which is important in the real estate investment trust (REIT) sector. This move demonstrates Gladstone's ability to attract and retain high-caliber tenants, enhancing the overall value and appeal of their industrial properties.
Industrial properties have been highly sought after, especially with the boom in e-commerce and supply chain optimization needs. The location in Taylor, Pennsylvania, provides strategic advantages such as proximity to major transportation networks, which is essential for logistics companies. This lease could potentially lead to increased investor confidence and a more robust market perception of Gladstone's industrial assets.
From a financial perspective, this lease agreement is beneficial for Gladstone Commercial Corporation's revenue and cash flow stability. A 7-year lease term provides predictable rental income, which is particularly favorable given the volatile nature of the broader commercial real estate market. Additionally, the agreement mitigates vacancy risk, ensuring continuous income without interruption.
Hub Group's solid financial standing and market reputation further de-risk the lease, providing assurance to investors about the reliability of rental payments. This deal underscores Gladstone's effective leasing strategy and might translate to higher shareholder value, reflected in potential stock price stabilization or appreciation.
However, investors should also pay attention to market conditions and economic factors that could impact both companies' performance in the long term.
MCLEAN, VA / ACCESSWIRE / June 17, 2024 / Gladstone Commercial Corporation (Nasdaq:GOOD) ("Gladstone Commercial") announced that it has executed a 7-year, 2-month lease with Hub Group, Inc. ("Hub Group") at its 966,753 SF industrial building in Taylor, Pennsylvania, commencing July 1, 2024. The property was purchased by Gladstone Commercial in 2014.
Hub Group (Nasdaq: HUBG) is a leading third-party logistics provider based in Oak Brook, Illinois. The company provides transportation and logistics services, including intermodal, truckload, less-than-truckload, flatbed, temperature-controlled, dedicated and regional trucking.
"We are excited to bring Hub Group into our portfolio as the full building occupant," stated Greg Yayac, Senior Vice President of Gladstone Commercial. "We look forward to having them as a tenant."
"This new lease demonstrates the quality of our industrial portfolio and continued tenant demand for this type of space," added Buzz Cooper, President of Gladstone Commercial. "We are pleased to maintain full occupancy at the property with no down time."
About Gladstone Commercial Corporation (Nasdaq: GOOD)
Gladstone Commercial is a real estate investment trust focused on acquiring, owning and operating net leased industrial and office properties across the United States. As of March 31, 2024, Gladstone Commercial's real estate portfolio consisted of 132 properties located in 27 states, totaling approximately 16.7 million square feet. For additional information please visit www.gladstonecommercial.com.
For Broker Submittals: For Asset Management Matters:
| Nick Lindsay | Greg Yayac |
| Vice President | Senior Vice President / Director |
| (703) 966-3864 | (703) 287-5912 |
| Nick.Lindsay@gladstonecompanies.com | Gregory.Yayac@gladstonecompanies.com |
Investor or Media Inquiries:
|
All statements contained in this press release, other than historical facts, may constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Words such as "anticipates," "expects," "intends," "plans," "believes," "seeks," "estimates" and variations of these words and similar expressions are intended to identify forward-looking statements. Readers should not rely upon forward-looking statements because the matters they describe are subject to known and unknown risks and uncertainties that could cause the Gladstone Commercial's business, financial condition, liquidity, results of operations, funds from operations or prospects to differ materially from those expressed in or implied by such statements. Such risks and uncertainties are disclosed under the caption "Risk Factors" of the company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023, as filed with the SEC on February 21, 2024, and certain other filings we make with the SEC. Gladstone Commercial cautions readers not to place undue reliance on any such forward-looking statements which speak only as of the date made. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
For further information:
Gladstone Commercial Corporation, (703) 287-5893
For Investor Relations inquiries related to any of the monthly dividend paying Gladstone funds, please visit www.gladstonecompanies.com.
SOURCE: Gladstone Commercial Corporation
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FAQ
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