EQT Real Estate Acquires 5.2 Million-Square-Foot Southern California Logistics Portfolio from Rexford Industrial for $1.2 Billion

EQT Real Estate has acquired a 32-building, 5.2 million-square-foot logistics portfolio across Southern California from Rexford Industrial Realty, Inc. for approximately $1.2 billion, the firms announced Sept. 17. The transaction gives EQT Real Estate Industrial Value Fund VI immediate scale across five of the region's core industrial submarkets at roughly $230 per square foot.

Portfolio Scope and Submarket Coverage

The portfolio spans Los Angeles, Orange County, the San Gabriel Valley, South Bay and Inland Empire West. Just over half of the portfolio's square footage sits in coastal infill locations — Los Angeles, Orange County, the San Gabriel Valley and South Bay — within approximately 25 miles of the Los Angeles/Long Beach port complex. The remaining 46% is concentrated in Inland Empire West along the I-10, I-15, SR-60 and SR-91 freight corridors near Ontario International Airport.

The 32 buildings are 96% leased to 36 tenants representing a cross-section of industries, including logistics and third-party logistics, automotive, apparel and fashion, consumer electronics, food and beverage, consumer goods, chemicals and plastics, aerospace and defense, and electrical, HVAC and building products. The weighted average lease term across the portfolio stands at 2.7 years.

Market Conditions Underpinning the Deal

The combined Los Angeles and Inland Empire metros are home to approximately 17.7 million residents, with an estimated 23 million to 25 million people within 250 miles of each market. The San Pedro Bay port complex — encompassing the ports of Los Angeles and Long Beach — handles about 31% of U.S. containerized international waterborne trade, a figure EQT Real Estate cited as a primary demand anchor for the acquisition.

Supply constraints are most pronounced in the coastal infill submarkets, where industrial occupancy has run at 93% to 94% over the past five years and inventory growth has measured just 0.6% to 1.1% over that period. Current availability in those markets stands at 7.9% to 8.8%. In the Inland Empire, occupancy sits at approximately 91.5%, supported by port access, proximity to Ontario International Airport and the warehouse intensity associated with e-commerce distribution.

EQT Real Estate's Strategic Rationale

Matthew Brodnik, Global Chief Investment Officer at EQT Real Estate, said the portfolio's positioning across both coastal infill and Inland Empire assets gives the firm a diversified platform along the region's core distribution corridors.

"Southern California remains one of the most supply-constrained industrial markets in the country, anchored by the scale of the Los Angeles and Long Beach ports and some of the tightest infill vacancy in the U.S.," Brodnik said. "This portfolio combines well-located coastal infill assets with scale in the Inland Empire, giving us a diversified, well-leased platform across the region's core distribution corridors. We believe the combination of durable port-driven demand and constrained new supply will continue to support strong operating performance across these assets."

Gardner Ellner, Managing Director, Investments, US Logistics at EQT Real Estate, highlighted the portfolio's multi-tenant income structure and the near-term leasing opportunities created by the 2.7-year average lease term.

"This acquisition reflects our ability to move quickly and decisively on a portfolio of this scale and complexity," Ellner said. "With 36 tenants across a diverse set of industries, the assets provide a granular, well-established income base from day one, and we see clear opportunities to deepen those relationships as leases roll over. We look forward to actively managing the portfolio, which features assets that are best positioned to capture the broadest and highest growth segments of tenant demand in Southern California."

About the Buyer and Seller

EQT Real Estate is the real estate segment of EQT, a global investment organization with approximately €341 billion in total assets under management as of June 30, 2026. EQT Real Estate manages about $52 billion in gross asset value, owns and operates more than 2,000 properties totaling over 450 million square feet, and employs more than 400 professionals across 50 locations globally. The firm acquires, develops, leases and manages logistics and residential properties in the Americas, Europe and Asia.

Rexford Industrial Realty, Inc. is a publicly traded real estate investment trust focused on Southern California industrial properties.

The short weighted average lease term across the acquired portfolio positions EQT Real Estate to re-lease or mark rents to market across a significant portion of the portfolio over the near term, consistent with the firm's value-add industrial strategy through Industrial Value Fund VI.

Sources

EQT Group — EQT Real Estate acquires 5.2 million square foot logistics portfolio across Southern California (Sept. 17, 2026)