REAL ESTATE NEWS

EQT Real Estate is continuing to make noise in the industrial space — but this time on the defense. The Randor, Pennsylvania-based firm announced the sale of a 25-asset portfolio that spans 8.7 million square feet. According to EQT Real Estate, this marks the largest industrial transaction made so far this year. The price was not disclosed.

The properties, built mostly after 2000, are located in 13 key markets including New York, Phoenix, Atlanta and Texas. Also, the assets host a range of tenants involved in e-commerce, retail supply chain and industrial sectors.

Some features at the properties include average heights of 31 feet, built to modern design specifications and loading configurations.

According to EQT, the locations benefit from tenant retention, limited supply, and "long term demand drivers."

"This transaction demonstrates EQT Real Estate at its very best, showcasing our ability to scale logistics platforms and deliver value across the investment lifecycle," Matthew Brodnik, global chief investment officer at EQT Real Estate, said in a statement.

"Our team identified an opportunity to assemble a portfolio with strong fundamentals and significant future upside, seeing it through from acquisition to stabilization with disciplined execution and hands-on management."

The record 2025 deal comes about a month after Swedish parent company EQT AB announced a plan to invest $250 billion into the U.S. over the next half-decade. A significant amount of this is expected to be allocated toward the industrial and logistics sector, after the private equity giant announced the discontinuation of its multifamily fund, while shifting away from office and life science.

In July, EQT Real Estate made a major U.S. industrial investment, with its $241.2 million acquisition of a 2.4 million square foot Sunbelt portfolio.

As the industrial sector deals with economic uncertainty, smaller properties in the sector are in hot demand, with construction of facilities under 100,000 square feet rising 16% year-over-year and 340 new projects breaking ground, according to the latest market report from CommercialCafe. Meanwhile, over the same period, construction for facilities exceeding 100,000 square feet dipped by more than half.

Source: GlobeSt/ALM