Peakstone Realty Trust Advances Industrial Pivot With $177M Property Sale
The divestment of office assets pushes industrial lease income over 50% of the company's total ABR.
September 04, 2025
Peakstone Realty Trust Sells Three Properties as Industrial Strategy Accelerates
Peakstone Realty Trust is moving quickly on its transition to an industrial-focused portfolio. The company just closed the sale of three properties—two offices and one flex industrial—for approximately $177 million. These deals were executed separately and at a blended cap rate of 7.6%, continuing a clear shift away from traditional office holdings.
With this latest round of transactions, industrial assets now make up more than half of Peakstone’s annualized base rent. The office segment, meanwhile, has narrowed to 20 properties with a combined net book value of $469 million. That’s now about 30% of the total real estate portfolio.
The company isn’t just rotating assets—it’s tightening its balance sheet. Leverage has improved and is in line with management’s target of 6.0x, though fluctuations are expected as more sales and acquisitions take place. The focus remains on repositioning the portfolio to support long-term growth in the industrial outdoor storage (IOS) space.
These changes reflect a deliberate strategy. The flex industrial property sale—alongside the office exits—signals that Peakstone is actively managing the entire portfolio. The company has indicated that more activity is likely, including possible dispositions from the industrial side, depending on market conditions and portfolio fit.
The broader environment continues to evolve. Trends like remote work and rising demand for logistics space are influencing how REITs allocate capital. Peakstone is responding by leaning into IOS and staying focused on opportunities that support this industrial pivot.
Investors will be watching how this strategy plays out over the coming quarters—particularly whether leasing performance and asset recycling continue to support the company’s momentum in the industrial segment.
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