- BlackRock launched HPS Net Lease Income REIT, targeting stabilized US industrial properties.
- Blackstone secures $1.2B CMBS loan for a 61-property industrial portfolio across 7.4M KSF.
- Industrial net leases now make up 53% of the $58B annual net lease market.
- E-commerce and aging warehouse stock drive demand for new industrial investment.
Asset Managers Double Down on Industrial
According to CoStar, BlackRock and Blackstone are ramping up their industrial real estate exposure as both firms unveil high-profile investment moves. BlackRock, the world’s largest asset manager, recently launched HPS Net Lease Income REIT—focused on stabilized net lease industrial assets—after acquiring ElmTree Funds and HPS Investment Partners. Meanwhile, Blackstone is set for a $1.2B CMBS refinancing of its 61-property, 7.4M KSF industrial portfolio.
BlackRock’s New Industrial REIT
BlackRock filed with the SEC to launch HPS Net Lease Income REIT, targeting stabilized industrial real estate leased long-term across the US. The vehicle will focus on net lease structures where tenants cover most building costs. ElmTree, now BlackRock’s external adviser for the REIT, has invested over $10.5B across 257 properties, including key assets like Amazon’s Tulsa fulfillment center. The launch follows BlackRock’s broader push into private markets and real assets. That strategy includes its recent acquisition of a major real estate data and analytics platform to deepen its alternative investment capabilities. The REIT plans to invest in both new build-to-suit and stabilized properties and intends to raise equity starting in 2026.
Get Smarter about what matters in CRE
Stay ahead of trends in commercial real estate with CRE Daily – the free newsletter delivering everything you need to start your day in just 5-minutes
Sector Drivers: E-Commerce & Warehouse Modernization
Industrial net leases have grown from 29% to 53% of the $58B net lease market since 2015. Aging inventory—68% of US Class A stock predates 2000—combined with e-commerce growth, is reshaping the sector. The REIT projects e-commerce sales will climb from $1.2T in 2025 to $1.5T by 2028, requiring increased warehousing space. Moreover, over $3T in US manufacturing investment is expected by 2030.
Blackstone Leverages CMBS for Industrial Gains
Major banks including Wells Fargo and Goldman Sachs will co-originate a $1.2B CMBS loan to fund Blackstone’s portfolio. This loan marks the third CMBS refinancing for the same assets in four years. The 7.4M KSF portfolio is heavily concentrated in supply-constrained US markets, notably Los Angeles, the Inland Empire, and New Jersey. Strong rent growth, proven by Home Depot’s 132% renewal rent increase at a New Jersey site, underpins lender confidence.
Industrial Real Estate Outlook
Recent activity from BlackRock and Blackstone illustrates continuing investor conviction in industrial real estate’s fundamentals. With steady leasing momentum, rising rents, and major institutional capital entering the space, the sector’s outlook remains strong as demand outpaces modern supply.
