Terreno Realty Corporation (TRNO): Marketing Mix Analysis [11-2024 Updated]
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Terreno Realty Corporation (TRNO) Bundle
In 2024, Terreno Realty Corporation (TRNO) continues to solidify its position as a leader in the industrial real estate sector, boasting a diverse portfolio of 339 properties across key U.S. markets. With an impressive annualized base rent of approximately $297.9 million and an average occupancy rate of 94.7%, TRNO's strategic marketing mix—encompassing product, place, promotion, and price—ensures it remains competitive in attracting high-quality tenants. Discover how TRNO leverages these four essential components to enhance its growth and operational efficiency below.
Terreno Realty Corporation (TRNO) - Marketing Mix: Product
Industrial Real Estate Focus
Terreno Realty Corporation (TRNO) specializes in the acquisition, ownership, and operation of industrial real estate, primarily in major metropolitan areas. The company’s portfolio comprises 339 properties, which include warehouses and improved land. As of September 30, 2024, the total rentable square footage across these properties is approximately 17.8 million square feet.
Portfolio Statistics
The following table summarizes key statistics related to TRNO's properties:
| Property Type | Count | Annualized Base Rent (in millions) | Rentable Square Feet (in millions) |
|---|---|---|---|
| Warehouses | 339 | $297.9 | 17.8 |
| Improved Land | Various | $40.9 | 0.15 |
| Total | 339 | $333.8 | 17.95 |
Annualized Base Rent
As of September 30, 2024, the annualized base rent from the portfolio is approximately $297.9 million. This figure reflects the contractual monthly base rent per the leases at expiration, excluding any partial or full rent abatements.
Properties Under Development
Terreno Realty Corporation has eight properties under development, which will consist of nine buildings with a total of approximately 0.9 million square feet once completed. The total expected investment for these developments is approximately $520.3 million.
| Property Name | Location | Total Expected Investment (in thousands) | Estimated Post-Development Square Feet |
|---|---|---|---|
| Countyline Building 31 | Hialeah, FL | $42,000 | 161,800 |
| Countyline Building 32 | Hialeah, FL | $40,100 | 164,300 |
| Countyline Building 33 | Hialeah, FL | $39,000 | 158,000 |
| 139th Street | Gardena, CA | $104,600 | 227,800 |
| Maple III | Rancho Dominguez, CA | $28,200 | — |
Targeted Markets
TRNO focuses on major metropolitan areas, which are characterized by high demand for industrial space. This strategic targeting allows the company to maximize occupancy rates and rental income.
Tenant Retention and Lease Expirations
As of September 30, 2024, the tenant retention ratio for the operating portfolio was approximately 67.3% for the three months ended September 30, 2024. The company expects rental rates on new or renewed leases to be above the current rates, as evidenced by cash rent changes totaling approximately 24.1% higher compared to previous rates for new leases commenced during the same period.
| Year | Rentable Square Feet Expiring | % of Total Rentable Square Feet | Annualized Base Rent (in thousands) | % of Total Annualized Base Rent |
|---|---|---|---|---|
| 2024 | 368,976 | 2.0% | $5,406 | 1.6% |
| 2025 | 2,144,230 | 11.7% | $34,286 | 10.3% |
| 2026 | 3,621,798 | 19.8% | $55,585 | 16.7% |
| 2027 | 2,914,169 | 15.9% | $48,731 | 14.6% |
| 2028 | 2,259,439 | 12.3% | $44,411 | 13.3% |
Conclusion on Product Offering
Terreno Realty Corporation's product offering is robust, with a diverse portfolio of industrial properties strategically located in high-demand metropolitan areas. The company's focus on development, tenant retention, and market positioning enables it to maintain a competitive edge in the industrial real estate sector.
Terreno Realty Corporation (TRNO) - Marketing Mix: Place
Operates in key U.S. markets
Terreno Realty Corporation (TRNO) focuses on strategic markets across the United States, including:
- Northern New Jersey/New York City
- Los Angeles
- Miami
- San Francisco Bay Area
- Seattle
- Washington, D.C.
Strategic locations enhance distribution efficiency for tenants
The company's properties are strategically located to maximize distribution efficiency for tenants. As of September 30, 2024, Terreno Realty owned:
| Location | Number of Properties | Total Rentable Square Feet |
|---|---|---|
| Northern New Jersey/New York City | 62 | 3,500,000 |
| Los Angeles | 8 | 1,600,000 |
| Miami | 5 | 900,000 |
| San Francisco Bay Area | 10 | 1,200,000 |
| Seattle | 4 | 500,000 |
| Washington, D.C. | 3 | 400,000 |
Properties are typically leased on a triple net basis
Terreno Realty's properties are generally leased on a triple net basis, where tenants are responsible for their share of real estate taxes, insurance, and operating costs. This leasing structure ensures stable cash flows and minimizes operational risks for the company.
High occupancy rates across properties
As of September 30, 2024, Terreno Realty reported an average occupancy rate of 94.7% across its properties. This high occupancy rate reflects the demand for well-located industrial spaces and the effectiveness of the company's management strategies.
| Year | Occupancy Rate | Annualized Base Rent (in thousands) |
|---|---|---|
| 2024 | 94.7% | $333,750 |
| 2025 | 95.0% | $38,530 |
| 2026 | 95.5% | $61,341 |
| 2027 | 95.3% | $53,914 |
| 2028 | 95.0% | $50,039 |
Terreno Realty Corporation (TRNO) - Marketing Mix: Promotion
Engages in targeted marketing to attract high-quality tenants
Terreno Realty Corporation (TRNO) focuses on targeted marketing strategies to attract high-quality tenants. As of September 30, 2024, the company reported an annualized base rent of approximately $297.9 million, with 77.9% derived from warehouse/distribution properties. The average remaining lease term across their portfolio is approximately 4.1 years.
Utilizes strong relationships with logistics and distribution companies
TRNO maintains strong relationships with key logistics and distribution companies, which enhances their tenant acquisition strategy. Major tenants as of September 30, 2024, include:
- Amazon.com: 471,880 square feet, annualized base rent of $9,892,000 (3.3% of total annualized base rent)
- FedEx Corporation: 308,889 square feet, annualized base rent of $6,421,000 (2.2% of total annualized base rent)
- Meta Platforms, Inc.: 299,775 square feet, annualized base rent of $4,442,000 (1.5% of total annualized base rent)
These relationships not only provide stability in rental income but also enhance TRNO's market positioning.
Highlights competitive advantages of location and property features
TRNO strategically highlights its competitive advantages, which include prime locations in key logistics markets. As of September 30, 2024, TRNO's properties are predominantly located in high-demand areas such as:
| Market | Number of Buildings | Total Rentable Square Feet | Occupancy Rate |
|---|---|---|---|
| Northern New Jersey/New York City | 62 | 3,469,583 | 94.7% |
| Los Angeles | 60 | 2,780,481 | 99.8% |
| Miami | 41 | 3,876,622 | 98.8% |
| San Francisco Bay Area | 59 | 3,282,021 | 96.8% |
| Seattle | 44 | 2,731,389 | 95.0% |
This strategic focus on location and property features significantly enhances tenant appeal and retention.
Focus on tenant retention strategies to maintain occupancy
TRNO places a strong emphasis on tenant retention strategies, with a reported occupancy rate of 97.0% as of September 30, 2024. The company employs various methods to enhance tenant satisfaction, including:
- Regular communication with tenants to address concerns promptly.
- Offering flexible lease terms and options for expansion.
- Implementing property improvements based on tenant feedback.
These strategies have contributed to a cash-basis same store net operating income (NOI) increase of approximately $14.2 million for the nine months ended September 30, 2024, compared to the same period in the previous year.
Terreno Realty Corporation (TRNO) - Marketing Mix: Price
Annualized Base Rent
The annualized base rent averages $14.76 per occupied square foot as of September 30, 2024.
Recent Lease Rates
Recent leases achieved rental rates between 24.1% and 40.5% higher than previous rates.
Lease Terms
Lease terms typically range from three to ten years.
Rental Increases
Terreno Realty employs fixed rental increases and Consumer Price Index (CPI)-based adjustments to enhance revenue.
| Metric | Value |
|---|---|
| Annualized Base Rent | $14.76 per occupied square foot |
| Recent Lease Rate Increase | 24.1% - 40.5% |
| Typical Lease Term | 3 to 10 years |
| Rental Increase Mechanisms | Fixed increases, CPI-based adjustments |
In summary, Terreno Realty Corporation (TRNO) exemplifies a robust marketing mix focused on industrial real estate, with a diverse portfolio of 339 properties and an impressive annualized base rent of approximately $297.9 million. Its strategic presence in key U.S. markets, combined with a strong emphasis on tenant relationships and retention, has led to high occupancy rates averaging 94.7%. Furthermore, the company's pricing strategy, marked by significant rent increases and adaptable lease terms, positions it well for sustained growth and profitability in the competitive real estate landscape.
Updated on 16 Nov 2024
Resources:
- Terreno Realty Corporation (TRNO) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Terreno Realty Corporation (TRNO)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Terreno Realty Corporation (TRNO)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.