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Duke Realty Takes Aim at Office Market

CHICAGO-The Indianapolis-based office and industrial REIT considers itself overweight in with industrial holdings in Atlanta, Indianapolis and Minneapolis. One way it wants to rebalance itself is adding more office properties in this market.

By Mark Ruda | Updated on December 03, 2002

CHICAGO-Count Indianapolis-based Duke Realty Corp. among those not ready to give up on the local suburban office market. Instead, the office and industrial REIT has the market high on its priority list for acquisitions, even if it involves acquiring a suburban property with a vacancy hole, within reason.

“We’d be hard-pressed to buy a vacant building in the East-West Corridor right now,” says co-chief operating officer Dennis Oklak, referring to the once tech-heavy submarket. US Equities Realty pegs the third-quarter vacancy rate there at 18.1%, but with 1.98 million sf of sublease space on the market, more than 25% of the office inventory is available.

However, Duke Realty officials conceded Tuesday in an investor forum for analysts and institutional investors that they have acquired 850,000 sf this year for $37 million, but hope to hit $100 million in a flurry of end-of-the-year deals. Next year, the target is $100 million to $200 million, Oklak says.

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