- BKM Capital Partners has put $2.8B into 72 assets in 2026, topping its $2.3B goal, and its CIO told Bisnow it will pass $3B across 79 by year-end.
- Mid-bay completions are down 70% since late 2023 per a BKM white paper, giving buyers confidence even as the Fed hiked and the 10-year Treasury yield moved above 5%.
- BKM hedges all its debt and says no deals have fallen apart, but its CIO expects acquisition volume to slow as sellers wait and the bid-ask spread widens.
Small-bay industrial buyers are still closing despite higher rates, and BKM Capital Partners is the clearest example, according to Bisnow.
This year BKM has put $2.8B into 72 assets, topping its $2.3B goal, chief investment officer Brett Turner.
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Supply Is the Story
Mid-bay completions have fallen 70% since late 2023, per a BKM white paper built on CoStar data, Bisnow reported. Big-box construction is up 19%, which leaves smaller buildings undersupplied.
That gap gives buyers the nerve to close despite the Fed’s first hike since 2023 and a 10-year Treasury yield that climbed past 5%.
Lee & Associates broker Jackson O’Neill told Bisnow some buyers will even overpay to get a foothold.
BKM’s Pace
By December, Turner told, BKM expects 79 acquisitions totaling more than $3B. The firm’s biggest buy was the Link Logistics portfolio covered in June: 51 properties and 8.5M SF for $1.81B, bought with Kayne Anderson Real Estate.
Since September, BKM has put $174M into three Florida deals, Bisnow reported. Turner told Bisnow that 75% to 80% of its volume never hits the open market.
BKM’s August market update, found small-bay assets commanding a 36% pricing premium over larger properties.
Rates, Hedges and Reputation
Turner told Bisnow BKM hedges 100% of its debt, so owned assets have seen little impact. He said no pending deals have collapsed and BKM has not pushed sellers to cut prices.
Other buyers are less patient. Bisnow reported that inflation, oil prices and a still-tricky debt market are sending some back to renegotiate before closing.
Why It Matters
Longpoint Partners’ Tom Stipanov told Bisnow the sector’s essential-use tenant base keeps cash flow steady whatever capital markets do. The firm closed a $195M, 729K SF Miami-Dade portfolio purchase from Brookfield affiliates in early September.
BKM’s own conviction is the tell: it says it can find undervalued assets with a margin of safety.
What’s Next
BKM has about $200M and 900K SF in escrow, Turner told Bisnow. After that he expects volume to slow. Sellers who can wait are waiting, and the bid-ask spread is widening, he said, until volatility settles.
