- EQT Exeter, the real estate arm of Swedish investment giant EQT, acquired 33 distribution buildings spanning nearly 5 MSF in 12 U.S. markets.
- This strategic purchase comes amid rising vacancies and slowed rent growth in the industrial market, signaling EQT Exeter’s confidence in long-term demand.
- The portfolio is currently 90% leased, with a significant portion of tenants already leasing from EQT Exeter.
According to CoStar, EQT Exeter, one of the world’s largest industrial property owners, is expanding its footprint with 33 more distribution buildings across the U.S.
As part of a larger portfolio of over $31B in assets under management, EQT Exeter is now well-positioned to benefit from evolving trends in e-commerce, manufacturing, and logistics.
Market Opportunity
The properties—located in markets such as Atlanta, Chicago, Cincinnati, and El Paso—total approximately 5 MSF and cater to key logistics hubs near interstates and major population centers.
Despite recent headwinds—such as rising vacancies and slowed rent growth—the industrial sector remains attractive due to its connection to logistics and e-commerce.
EQT Exeter has positioned itself to capitalize on market conditions caused by high interest rates, which have pressured property owners to sell.
Henry Steinberg, global head of EQT Exeter, highlighted the firm’s aggressive capital deployment strategy, emphasizing industrial properties as a major growth driver.
Portfolio Highlights
- Diverse Locations: Properties span the Southeast, Midwest, and Texas, with 21 buildings located in cities with existing EQT Exeter offices.
- Tenant Base: About 40% of the 34 unique tenants already lease from EQT Exeter, fostering tenant relationships and operational synergies.
- Building Size: The average building is over 138 KSF and ranges from big-box facilities to last-mile delivery centers.
Slowing Construction
While new supply has softened rent growth, a sharp drop in construction starts over the past two years could tighten vacancies starting in mid-2025.
Moreover, the development of over 20 electric vehicle, battery, and semiconductor plants by 2026 is expected to increase industrial space demand, potentially reaccelerating rent growth.
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Broader Deal Activity
This acquisition is part of a larger strategy by EQT Exeter to solidify its dominance in the industrial sector:
- Recently acquired a last-mile delivery center leased by Amazon in the Seattle area, marking the region’s largest industrial transaction by price in nearly two years.
- Purchased a four-building industrial portfolio in Columbus, Ohio, and announced additional acquisitions totaling over $245M earlier this year.
Looking Ahead
Despite current market challenges, EQT Exeter’s confidence in the industrial sector underscores the long-term demand for logistics and warehousing space.
With industrial construction slowing and new demand drivers emerging, the firm anticipates a rebound in rent growth by late 2025.
