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$2B in Deals Signal Return of Confidence in Industrial Market

$2B in Deals Signal Return of Confidence in Industrial Market

Clarion, Prologis, and Blackstone are pouring billions into warehouses—targeting modern, coastal, and high-demand logistics hubs.

Nina Dale
February 10, 2026

Together with

Good morning. While data centers steal the spotlight, big investors are quietly fueling a rebound in the industrial market. From LA to Houston, the smart money is chasing modern warehouses in strategic logistics corridors.

Today’s issue is sponsored by Pace Loan Group—Built for speed in C-PACE lending, with institutional backing and streamlined closings.

🎙️This Week on No Cap: We go deep into the hidden mechanics of commercial real estate debt with Trimont CEO Bill Sexton, who unpacks how loan servicing really works, where distress is quietly building, and why the next phase of the credit cycle is already underway.

CRE Trivia 🧠

According to Brinker International’s CEO, what menu item’s return helped spark Chili’s recent sales surge?

(Answer at the bottom of the newsletter)

Market Snapshot

S&P 500

GSPC

6,964.82

Pct Chg:
+0.47%

FTSE NAREIT

FNER

793.54

Pct Chg:
+0.38%

10Y Treasury

TNX

4.202%

Pct Chg:
-0.004

SOFR

30-DAY AVERAGE

3.66%

Pct Chg:
-0.00

*Data as of 2/9/2026 market close.

Big Money

$2B in Deals Signal Return of Confidence in Industrial Market

While AI-fueled data centers dominate headlines, major investors are quietly doubling down on select industrial assets—especially in coastal logistics hubs.

Leading the buying spree: Clarion Partners is a key player in the industrial rebound, spending $2B over the past year on large, modern, fully leased warehouses in top port markets.

Zoom in: Recent deals include a $592M Amazon- and Best Buy–leased portfolio and a $145M Riverside, CA acquisition. The firm has also launched nearly $1B in high-end developments across the U.S. and Europe, signaling confidence in long-term logistics and e-commerce demand.

Big money returns: Prologis set a leasing record in 2025 as tenants flocked to high-ceilinged, power-ready buildings in LA and beyond. Brookfield’s $1.2B Peakstone acquisition and Blackstone’s $718M Texas warehouse deal signal that institutional capital is back—but selective.

Tenant activity: Despite a decade-high vacancy rate, tenant activity rebounded in late 2025, led by newer industrial properties. Leasing is strengthening in Phoenix, Houston, and San Jose, with Houston 60% above pre-pandemic levels and Phoenix posting 15.3 MSF of net absorption in 2025.

Modern specs matter: Tenants are favoring efficient warehouses with access to labor, strong infrastructure, and reliable power. Clarion reports rising demand for larger footprints as companies recalibrate post-COVID needs and prioritize automation, a shift underscored by Amazon’s deployment of 1M warehouse robots globally.

Spillover effect: Even though Clarion isn’t investing in data centers, its leaders say AI-driven development is tightening warehouse supply as older facilities are redeveloped. That shift is lifting rents in nearby industrial markets, including Silicon Valley’s Fremont area, now a hub for advanced manufacturing and IT distribution.

➥ THE TAKEAWAY

Quality over quantity: Selective capital is returning to industrial real estate, favoring modern warehouses in prime locations. As leasing stabilizes and AI-driven redevelopment tightens supply, these assets are positioned to outperform.

TOGETHER WITH PACE LOAN GROUP

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✍️ Editor’s Picks

Can an LLC Complete a 1031 Exchange? An LLC may qualify depending on ownership structure and tax treatment. Learn the key considerations and scenarios investors should understand before proceeding. (sponsored)
Debt easing: CRE lenders are finally loosening underwriting standards after years of tightening, signaling cautious optimism across the debt markets.
Double standard: Investors are penalizing Amazon but rewarding Google for similar data center expansion, reflecting different market perceptions of capital discipline.
Builder scrutiny: The Trump administration is weighing an antitrust investigation into major U.S. homebuilders, citing concerns that trade group coordination may be limiting housing supply and inflating prices.
People problem: A collapse in net migration to the U.S. is shrinking the long-term demand curve for commercial real estate, particularly in growth-dependent sectors.
Price pause: Commercial property pricing appears to have found a floor, but analysts warn it's a stabilization—not a springboard for recovery.

🏘️ MULTIFAMILY

Activist pressure: An activist investor is urging Veris Residential to put itself up for sale, highlighting renewed pressure on REITs to unlock shareholder value.
Love leases: After Valentine’s Day, apartment searches spike nationwide, revealing a split between cities where couples move in together and those where breakups drive downsizing.
January inflection: U.S. apartment rents rose again in January, extending December’s turnaround despite ongoing supply pressure.
Subsidy momentum: Affordable housing is gaining traction, driven by fresh funding, favorable legislation, and growing investor interest amid economic uncertainty.
Steady stretch: AvalonBay reported solid Q4 results and expressed guarded optimism for 2026, buoyed by resilient rents and slowing new supply.
Aging upside: Investors are doubling down on senior living, accepting tighter cap rates in hopes that demographic trends and occupancy gains will pay off.

🏭 Industrial

Robo factory: Tesla is doubling down on its Fremont-area campus, transforming the space into a hub for humanoid-robot production in a rare bet on domestic manufacturing.
Supply spill: A spike in industrial subleases in Miami is being driven by cooling demand from housing-related tenants, signaling sector-specific stress.
Storage JV: A new JV is targeting industrial outdoor storage with over $500M in capital, underscoring growing institutional appetite for niche asset classes.

🏬 RETAIL

Tax tension: Investors are suing over a reduced tax assessment on the American Dream megamall, claiming it endangers their repayment prospects.
Shop split: A strong holiday retail season belies a "K-shaped" recovery, where high-income shoppers thrive, and lower-income households pull back.
Portfolio play: HPS scooped up a significant Northeastern retail portfolio in a value-driven play on stabilized grocery-anchored and community centers.
Checkout choice: SoCal grocery-anchored retail is seeing a spike in institutional investment, driven by perceived stability and resilient foot traffic.

🏢 OFFICE

Office hunt: Investors have poured $43B into distressed office assets, betting on a long-term rebound while pricing remains depressed.
Seasonal shift: Hybrid work trends are now showing clear seasonal patterns, with return-to-office rates dipping in summer and rising again in the fall.
Charlotte bet: Cousins Properties has acquired the 24-story Vantage South End tower in Charlotte for $318M, signaling confidence in the city's fast-growing office market.

🏨 HOSPITALITY

Changing hands: Two Ritz-Carlton hotels are in contract to change hands, marking high-profile trades amid renewed investor interest in top-tier hospitality.
District deals: CarrAmerica landed $99M in refinancing from Morgan Stanley for the InterContinental Hotel at The Wharf, marking another major capital shift in the district's high-profile development zone.

A MESSAGE FROM ARBOR REALTY TRUST

Arbor Realty Trust’s Affordable Housing Trends Report

As the cost of living in the U.S. climbs, the shortage of affordable housing is a persistent challenge for many communities. As calls for change grow louder, Arbor Realty Trust and Chandan Economics document federal and state initiatives aimed at alleviating housing pressure.

Explore our investor’s guide to find out how new affordable housing opportunities and lingering challenges are converging in a sector known for its strength, stability, and consistency.

*This is a paid advertisement. Please see the full disclosure at the bottom of the newsletter.

📈 CHART OF THE DAY

Industrial and office buildings dominate self-storage conversions, together accounting for roughly three-quarters of all adaptive reuse projects.

CRE Trivia (Answer)🧠

The return of Chili’s skillet queso, which CEO Kevin Hochman said was brought back after listening to customers and quickly helped boost sales.

$2B in Deals Signal Return of Confidence in Industrial Market

Clarion, Prologis, and Blackstone are pouring billions into warehouses—targeting modern, coastal, and high-demand logistics hubs.