Terreno Realty Expands Footprint With $232.6M Woodinville Acquisition

Terreno Realty Corporation TRNO has made another strategic move to bolster its portfolio. This industrial REIT acquired a prime portfolio of industrial properties in Woodinville, WA, for approximately $232.6 million. This acquisition reinforces TRNO’s long-term growth strategy by deepening its presence in the high-demand Seattle market, one of its core operating regions.

With industrial real estate continuing to benefit from e-commerce tailwinds, proximity to dense population centers and supply-chain resilience initiatives, this transaction could enhance the company’s earnings visibility and cash flow stability.

The newly acquired Woodinville portfolio comprises nine industrial distribution buildings totaling roughly 720,000 square feet across 42.8 acres. Located on Woodinville-Redmond Road, the assets enjoy good connectivity and access to the Seattle metropolitan area. As of the acquisition date, the properties were approximately 91% leased to 26 tenants, offering both immediate rental income and potential upside through lease-up and rent growth. 

This acquisition is part of a larger multi-market portfolio totaling 1.2 million square feet, which also includes properties in Miami and Northern New Jersey. Terreno expects to complete the remainder of this $426.9 million multi-market acquisition by September 2025, with an estimated stabilized cap rate of 5%.

TRNO’s disciplined investment approach was also on display earlier this month when it acquired an industrial property in Redondo Beach, CA, for $35.5 million. That transaction included two industrial distribution buildings totaling approximately 100,000 square feet on 5.1 acres, fully leased to two tenants. The Redondo Beach asset, strategically located west of I-405 and adjacent to an existing Terreno property, boasts a higher estimated stabilized cap rate of 5.8%. Together, these acquisitions reflect TRNO’s commitment to sourcing high-quality, well-located industrial assets in supply-constrained, high-demand coastal markets.

Final Take on TRNO

From an investment perspective, these transactions strengthen TRNO’s portfolio income profile and support long-term shareholder value creation. The company’s six target markets — New York City/Northern New Jersey, Los Angeles, Miami, San Francisco Bay Area, Seattle and Washington, D.C. — benefit from strong demographics, robust trade flows and growing demand for last-mile distribution facilities. 

Moreover, with national industrial vacancy rates still near historic lows in key logistics hubs, TRNO appears well-positioned to achieve steady rent growth and maintain high occupancy levels. The 5% stabilized cap rate for the Woodinville deal aligns with current market norms for prime coastal industrial properties, balancing yield with long-term appreciation potential.

While global trade disruptions — including tariff and supply-chain uncertainties — could influence leasing demand and capital markets conditions, TRNO’s acquisition momentum, coupled with its focused coastal market strategy and disciplined underwriting, suggests that the company remains on a solid growth path.

Shares of this Zacks Rank #2 (Buy) company have declined 6.4% in the past three months compared with the industry’s fall of 0.4%. The current price level offers a good entry point.

Other Stocks to Consider

Some other top-ranked stocks from the broader REIT sector are W.P. Carey WPC and Plymouth Industrial REIT, Inc. PLYM. W.P. Carey and Plymouth Industrial REIT each currently carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for WPC’s 2025 FFO per share of $4.87 calls for a 3.6% year-over-year increase.

The consensus estimate for PLYM’s 2025 FFO per share of $1.86 suggests a 1.6% increase year over year.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.

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This article originally published on Zacks Investment Research (zacks.com).

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