Cabot Properties Sells 2.5 Million SF Chicago-Minneapolis Industrial Portfolio With CBRE

CHICAGO — July 29, 2026 — Cabot Properties has completed the disposition of the North Central Portfolio, a collection of 11 modern industrial properties totaling approximately 2.5 million square feet across key submarkets in Greater Chicago and Minneapolis. A prominent global asset manager acquired the portfolio; the buyer was not identified and financial terms were not disclosed. The Chicago-based CBRE team represented Cabot Properties in the transaction.

Portfolio Composition and Property Details

The North Central Portfolio comprises assets both developed and acquired by Cabot Properties, spanning two major Midwest industrial markets. Six of the 11 properties are located in the North/Central Kane County and West Suburbs submarkets of Greater Chicago, totaling approximately 1.6 million square feet. Those buildings include four cross-dock facilities and two rear-load properties, with an average vintage of 2019. The Chicago assets feature 32-foot clear heights, ESFR sprinkler systems, and truck court depths ranging from 130 to 185 feet. The six-building Chicago component is 97% occupied by tenants across logistics and distribution uses.

The remaining five properties are located in Minneapolis's Northwest and Southwest submarkets and account for approximately one million square feet. Those rear-load facilities carry an average vintage of 2014 and share similar modern specifications, including 32-foot clear heights, ESFR sprinkler systems, and truck court depths of 130 to 155 feet. The Minneapolis component is 100% leased to distribution and light manufacturing occupiers.

Market Fundamentals Across Chicago and Minneapolis

Cabot Properties cited strong regional infrastructure, diversified labor pools, and favorable population trends as factors underpinning the strategic importance of both markets. CoStar data through the first quarter of 2026 shows the North Kane County submarket carrying a vacancy rate of 5.0%, while Central Kane County stood at 6.6%. The West Suburbs submarket of Chicago recorded a vacancy rate of 2.7% as of Q1 2026, outperforming the broader Chicago industrial market.

In Minneapolis, the Northwest submarket posted a vacancy rate of 5.2% and the Southwest submarket recorded 6.8% as of Q1 2026, reflecting healthy fundamentals across both corridors. The portfolio was brought to market at near-peak occupancy across submarkets that have demonstrated steady absorption and tenant demand.

Execution in a Challenging Bulk Transaction Environment

"Our team executed a targeted marketing and bidding process to identify a strong institutional buyer during a challenging time for bulk industrial transactions in the broader market," said Carey Herrlinger, Managing Director, Investments for the Western/Central Regions at Cabot Properties. "Chicago and Minneapolis are strategically important industrial markets in the Midwest, supported by strong regional infrastructure, diversified labor pools and favorable population trends. I am grateful for the diligence, expertise, and day-to-day support of the entire Cabot team that contributed to a favorable transaction process."

The disposition is consistent with Cabot Properties' broader investment approach of assembling, leasing, and stabilizing multi-asset logistics portfolios before executing institutional exits. The Boston-headquartered firm has invested more than $19 billion in logistics real estate since its founding in 1986, operated more than 240 million square feet across 1,778 buildings, and served over 4,400 tenants globally. Cabot maintains offices in Atlanta, Chicago, Dallas, Los Angeles, London, Amsterdam, Sydney, Tokyo, Munich, Houston, New York, Orlando, and New Jersey, in addition to its Boston headquarters.

CBRE's Role and Broader Context

CBRE's Chicago-based Capital Markets team handled the marketing and sale process on behalf of Cabot Properties. The transaction reflects continued institutional appetite for modern, well-leased logistics assets in core Midwest markets, even as large portfolio trades have become more difficult to execute in the current environment. The North Central Portfolio's near-full occupancy across both the Chicago and Minneapolis components, combined with modern specifications and diversified tenant bases, positioned the assets for an institutional buyer seeking stabilized logistics exposure in regional distribution hubs.