EastGroup Properties Expands Industrial Footprint Across Sun Belt
EastGroup Properties is aggressively scaling its industrial portfolio, closing a series of strategic land acquisitions and development projects in Texas and Florida. The company, which currently maintains a 97.1% lease rate, is leveraging strong leasing velocity to fuel its expansion into key supply-constrained logistics submarkets.
CEO Marshall Loeb confirmed the company’s portfolio is currently outperforming internal expectations, driven by significant rental rate growth. During July and August, EastGroup finalized 1,944,000 square feet in new and renewal leases, with rental rates increasing by 38.9% on a straight-line basis. This momentum is supported by the recent $83 million acquisition of the Harris Ridge Business Center in Austin, which added 388,000 square feet of leasable space.
Development efforts remain focused on high-growth corridors. In the Northeast Dallas submarket, the company expanded its Frisco Park 121 project, tripling the planned development to 1,000,000 square feet. A similar strategy is underway in East Tampa, where a $12 million land acquisition increased the Crossroads Logistics Park plan to 850,000 square feet. To bolster its capital position, EastGroup entered into forward equity sale agreements for 532,460 shares, projecting gross proceeds of approximately $108.6 million. Management is set to outline these growth trajectories during a series of investor conferences throughout September, beginning with the Evercore Real Estate Conference.
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