Terreno Realty Corporation (NYSE:TRNO), an acquirer, owner and operator of industrial real estate in six major coastal U.S. markets, announced today its operating, investment and capital markets activity for the third quarter of 2026.
Operating
As of September 30, 2026, Terreno Realty Corporation owned 317 buildings aggregating approximately 20.5 million square feet and 46 improved land parcels consisting of approximately 146.5 acres leased to 687 customers, after excluding one property held for sale:
- The operating portfolio was 97.8% leased at September 30, 2026 as compared to 97.6% at June 30, 2026 and 96.2% at September 30, 2025;
- The same-store portfolio of approximately 17.3 million square feet was 97.9% leased at September 30, 2026 as compared to 98.3% at June 30, 2026 and 98.0% at September 30, 2025;
- The improved land portfolio of 46 parcels totaling approximately 146.5 acres was 95.5% leased at September 30, 2026 as compared to 93.3% at June 30, 2026 and 93.6% at September 30, 2025;
- Cash rents on new and renewed leases totaling approximately 1.1 million square feet and 3.6 acres of improved land commencing during the third quarter increased approximately 27.7% with a tenant retention ratio of 66.7% for the operating portfolio and 0.0% for the improved land portfolio. Cash rents on new and renewed leases totaling approximately 2.6 million square feet and 18.3 acres of improved land commencing during the nine months ended September 30, 2026 increased approximately 26.1% with a tenant retention ratio of 64.6% for the operating portfolio and 58.5% for the improved land portfolio;
- Executed an early lease renewal for 34,000 square feet in Jamaica Queens, New York with a logistics and transportation services provider. The lease will commence November 1, 2027 and expire October 2029;
- Executed an early lease renewal for 73,000 square feet in Torrance, California with an advanced manufacturer of complex metal structures for the aerospace, defense and automotive industries. The lease will commence February 1, 2027 and expire April 2032;
- Executed two renewals and an expansion totaling 244,000 square feet across two buildings in Carson, California with a global provider of freight forwarding services. The renewals are a partial building lease of 146,000 square feet and a full building lease of 34,000 square feet. A partial building lease of 64,000 square feet is an expansion, making the building 100% leased to a single tenant and backfilling immediately an expiring tenant lease. The combined lease commenced September 15, 2026 and will expire September 2031;
- Executed a full-property lease for 81,000 square feet with an additional two floors of indoor parking on 4.0 acres in College Point, Queens, New York with a leading e-commerce firm. The lease commenced July 24, 2026 and will expire July 2029. The tenant has four renewal options; the first for ten years and the three subsequent options for five years each. In certain circumstances the tenant may terminate the lease with six months notice during the initial three-year term. The total expected investment in the property is $98.8 million and the estimated stabilized cap rate is 6.4%;
- Executed two expansions and an extension totaling 87,000 square feet in Woodinville, Washington with a designer and builder of data centers in space. An expansion for 37,000 square feet will commence October 1, 2027 and an expansion for 23,000 square feet commenced October 1, 2026, both immediately upon expiration of existing tenant leases. Both leases will expire December 2031. The tenant’s existing lease of 27,000 square feet which was to expire July 2031 has been extended and will expire December 2031; and
- Executed early lease renewals in Sunnyvale, California with a leading provider of molecular diagnostic testing. The leases of three buildings totaling 172,000 square feet, which were to expire in March 2030, will now expire March 2035.
Investment
During the third quarter of 2026, Terreno Realty Corporation acquired three industrial properties consisting of three buildings containing approximately 85,000 square feet for an aggregate purchase price of approximately $49.0 million. The third quarter investment activity was as follows:
- 20701 Manhattan Place: One industrial distribution building containing approximately 36,000 square feet on 1.7 acres located in Torrance, California, west of I-405. The property provides six dock-high and two grade-level loading positions and parking for 87 cars. The property was acquired 100% leased to one tenant through November 30, 2026. Terreno Realty Corporation has executed a lease for 100% of the building with a builder of floating sensors for autonomous maritime drones that will commence December 1, 2026 and expire February 2030. The property was acquired for a purchase price of approximately $14.7 million and an estimated stabilized cap rate of 6.0%;
- 659 Court Street: One industrial distribution building containing approximately 28,000 square feet on 1.5 acres located in Red Hook Brooklyn, New York. The property provides two grade-level loading positions, parking for 70 cars and has riparian access. The property was acquired 100% leased to a maritime goods and services provider for a purchase price of approximately $26.3 million and an estimated stabilized cap rate of 5.2%; and
- 9680 153rd Avenue NE: One industrial distribution building containing approximately 21,000 square feet on 1.5 acres located in Redmond, Washington, immediately adjacent to Terreno Realty Corporation’s property at 9660 153rd Avenue NE on Seattle’s Eastside. The property provides five grade-level loading positions and parking for 56 cars. The property was acquired vacant for a purchase price of approximately $8.0 million and an estimated stabilized cap rate of 5.9%.
Year-to-date, Terreno Realty Corporation has acquired nine industrial properties consisting of eleven buildings containing approximately 722,000 square feet for an aggregate purchase price of approximately $323.1 million.
During the third quarter of 2026, Terreno Realty Corporation sold two properties consisting of two buildings containing approximately 144,000 square feet for an aggregate sale price of approximately $30.1 million:
- One industrial distribution building containing approximately 113,000 square feet on 3.4 acres in Miami, Florida, for a sale price of approximately $21.3 million. The property was purchased by Terreno Realty Corporation in September 2012 for approximately $8.9 million. The unleveraged internal rate of return generated by the investment was 11.1%; and
- One industrial distribution building containing approximately 31,000 square feet on 2.2 acres in Fairfield, New Jersey, for a sale price of approximately $8.8 million. The property was purchased by Terreno Realty Corporation in July 2013 for approximately $2.8 million. The unleveraged internal rate of return generated by the investment was 11.9%.
Year-to-date, Terreno Realty Corporation has sold five properties consisting of six buildings containing approximately 530,000 square feet for an aggregate sale price of approximately $116.3 million.
During the third quarter of 2026, Terreno Realty Corporation completed the development and stabilization of Whitestone Logistics in College Point, Queens, New York. The building is 100% leased to a leading e-commerce firm. Whitestone is an 81,000 square foot industrial distribution building with two additional floors of indoor parking on 4.0 acres in College Point, Queens, New York. The lease commenced July 2026 and will expire July 2029. The total expected investment is $98.8 million and the estimated stabilized cap rate is 6.4%.
Year-to-date, Terreno Realty Corporation has completed the development and stabilization of three properties consisting of three industrial distribution buildings aggregating approximately 465,000 square feet, with a total expected investment of $197.5 million.
As of September 30, 2026, Terreno Realty Corporation had three properties under development or redevelopment that, upon completion, will consist of three buildings aggregating approximately 0.6 million square feet which are approximately 70.6% pre-leased, with a total expected investment of approximately $165.1 million.
Terreno Realty Corporation has approximately $101.9 million of acquisitions under contract. Additionally, Terreno Realty Corporation has approximately $25.0 million of held for sale dispositions under contract where due diligence has completed. There is no assurance that Terreno Realty Corporation will acquire or dispose of the properties under contract because the proposed acquisitions are subject to the completion of satisfactory due diligence, and closing conditions, and the proposed disposition is subject to closing conditions.
Capital Markets
During the third quarter of 2026, Terreno Realty Corporation issued 1,958,245 shares of common stock with a weighted average offering price of $67.12 per share under the Company’s at-the-market equity offering program, receiving gross proceeds of $131.4 million. During the nine months ended September 30, 2026, Terreno Realty Corporation issued 6,032,473 shares of common stock with a weighted average offering price of $66.12 per share under the Company’s at-the-market equity offering program, receiving gross proceeds of $398.9 million. Terreno Realty Corporation did not repurchase any shares of common stock pursuant to the Company’s share repurchase authorization.
As of September 30, 2026, there were no borrowings outstanding under Terreno Realty Corporation’s $600 million revolving credit facility. Terreno Realty Corporation has no further debt maturities in 2026 and $150 million of debt maturities in 2027.
Additional information is available on the Company’s website at www.terreno.com. Terreno Realty Corporation expects to file its quarterly report on Form 10-Q for the quarter ended September 30, 2026 on or about November 4, 2026.
Terreno Realty Corporation acquires, owns and operates industrial real estate in six major coastal U.S. markets: New York City/Northern New Jersey; Los Angeles; Miami; San Francisco Bay Area; Seattle and Washington, D.C.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the federal securities laws. We caution investors that forward-looking statements are based on management’s beliefs and on assumptions made by, and information currently available to, management. When used, the words “anticipate”, “believe”, “estimate”, “expect”, “intend”, “may”, “might”, “plan”, “project”, “result”, “should”, “will”, “seek”, “target”, “see”, “likely”, “position”, “opportunity”, “outlook”, “potential”, “future” and similar expressions which do not relate solely to historical matters are intended to identify forward-looking statements. These statements are subject to risks, uncertainties, and assumptions and are not guarantees of future performance, which may be affected by known and unknown risks, trends, uncertainties, and factors that are beyond our control, including risks related to our ability to meet our estimated forecasts related to stabilized cap rates, and those risk factors contained in our Annual Report on Form 10-K for the year ended December 31, 2025 and our other public filings. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated, or projected. We expressly disclaim any responsibility to update our forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. Accordingly, investors should use caution in relying on past forward-looking statements, which are based on results and trends at the time they are made, to anticipate future results or trends.
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