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 second quarter of 2026.
Operating
As of June 30, 2026, Terreno Realty Corporation owned 316 buildings aggregating approximately 20.6 million square feet and 46 improved land parcels consisting of approximately 147.0 acres leased to 697 customers:
- The operating portfolio was 97.6% leased at June 30, 2026 as compared to 96.3% at March 31, 2026 and 97.7% at June 30, 2025;
- The same-store portfolio of approximately 17.5 million square feet was 97.8% leased at June 30, 2026 as compared to 97.6% at March 31, 2026 and 97.7% at June 30, 2025;
- The improved land portfolio of 46 parcels totaling approximately 147.0 acres was 93.3% leased at June 30, 2026 as compared to 96.6% at March 31, 2026 and 95.1% at June 30, 2025;
- Cash rents on new and renewed leases totaling approximately 0.8 million square feet and 7.5 acres of improved land commencing during the second quarter increased approximately 27.7% with a tenant retention ratio of 55.6% for the operating portfolio and 100.0% for the improved land portfolio. Cash rents on new and renewed leases totaling approximately 1.5 million square feet and 14.7 acres of improved land commencing during the six months ended June 30, 2026 increased approximately 25.3% with a tenant retention ratio of 63.2% for the operating portfolio and 60.3% for the improved land portfolio;
- Executed an early lease renewal for 27,000 square feet in Washington, D.C. with the Supreme Court of the United States. The lease, which was to expire in 2032, will now expire March 2036. In addition, the Supreme Court has leased an adjacent vacant 29,000 square feet. The lease of the previously vacant space commenced April 1, 2026 and will expire March 2036;
- Executed an early lease renewal for 68,000 square feet in Washington, D.C. with a provider of educational services. The lease will commence December 1, 2026 and expire December 2031;
- Executed a lease for a transshipment facility on 10.2 acres in Hayward, California with a fully autonomous all-electric ride-hailing provider. The lease commenced March 13, 2026 and will expire March 2031;
- Executed a pre-lease for a 4.6-acre improved land parcel in Elizabeth, New Jersey with a truck sale and lease operator. The lease will commence November 1, 2026 immediately upon expiration of an existing tenant lease and will expire January 2034;
- Executed an early lease renewal for 107,000 square feet in Kent, Washington with a provider of flooring products and services. The lease will commence May 1, 2027 and expire July 2032;
- Executed a lease for 92,000 square feet in Kearny, New Jersey with a third-party logistics provider. The lease commenced June 30, 2026 and will expire December 2031;
- Executed an early lease renewal for 102,000 square feet in Hayward, California with a moving and storage operator. The lease will commence December 1, 2026 and expire January 2032;
- Executed a lease for 94,000 square feet in Union City, California with a provider of IT infrastructure, cloud and security solutions. The lease will commence September 1, 2026 and will expire October 2033. To facilitate the new lease, Terreno Realty Corporation terminated effective August 31, 2026 the in-place lease that was to expire July 2031 and received a negotiated early termination payment from the prior tenant of approximately $2.0 million;
- Executed new and renewal leases totaling 233,000 square feet at Countyline Corporate Park Phase III in Hialeah, Florida. Countyline Corporate Park Buildings 26 and 28 total 422,000 square feet and are currently 100% leased to six tenants with 83,000 square feet expiring April 2027. To facilitate the new leases, Terreno Realty Corporation has executed an early termination effective July 31, 2026 with the tenant that was to expire April 2027. A provider of turbine engine disassembly, repair, logistics and storage services will relocate from 106,000 square feet in Building 28 expiring April 2030 to 83,000 square feet in Building 26. The lease will commence August 1, 2026 and expire March 2035. Terreno Realty Corporation has executed an early renewal and expansion lease with a global wholesale packaging provider in Building 28. The early renewal for 43,000 square feet will commence October 1, 2027 and expire January 2035. The expansion lease for 106,000 square feet is expected to commence November 1, 2026 and will expire January 2035. After commencement of the new leases Countyline Corporate Park Buildings 26 and 28 will be 100% leased to five tenants; and
- Executed a lease for 68,000 square feet in Doral, Florida with an importer and exporter of fresh produce. The lease commenced June 30, 2026 and will expire July 2037. Further, Terreno Realty Corporation has executed an expansion lease with an adjacent tenant for an additional 10,000 square feet, bringing the 194,000 square foot building acquired in September 2025 to 100% leased. The expansion lease will commence September 30, 2026 and will expire May 2032.
Investment
During the second quarter of 2026, Terreno Realty Corporation acquired four industrial properties consisting of six buildings containing approximately 518,000 square feet for an aggregate purchase price of approximately $172.3 million. The second quarter investment activity was as follows:
- 201-395 Mendell Street: One industrial distribution building containing approximately 65,000 square feet on 3.8 acres located in San Francisco, California, in San Francisco’s India Basin neighborhood. The property provides 17 dock-high and 10 grade-level loading positions and parking for 95 cars. The property was acquired 100% leased to four tenants, all of which expire by May 2031, for a purchase price of approximately $25.9 million and an estimated stabilized cap rate of 5.5%;
- 5751 General Washington Drive: One industrial distribution building containing approximately 50,000 square feet on 2.8 acres located in Alexandria, Virginia, adjacent to the intersection of I-95 and I-495 (the Capital Beltway). The property provides eight dock-high and one grade-level loading positions and parking for 73 cars. The property was acquired 77% leased to three tenants for a purchase price of approximately $13.0 million and an estimated stabilized cap rate of 5.0%;
- 3100-3300 Hubbard Road: Three industrial distribution buildings containing approximately 305,000 square feet on 24.0 acres located in Landover, Maryland, adjacent to U.S. Route 50 approximately three miles outside Washington, D.C. The property provides 49 dock-high and nine grade-level loading positions and parking for 417 cars. The property was acquired 92% leased to nine tenants for a purchase price of approximately $77.1 million and an estimated stabilized cap rate of 5.5%; and
- 10910 NW 144th Street: One industrial distribution building containing approximately 98,000 square feet on 16.8 acres located in Hialeah Gardens, Florida, adjacent to the intersection of Florida’s Turnpike and Okeechobee Road. The property provides nine dock-high and six grade-level loading positions and parking for 596 cars. The property was acquired 100% leased to a leading e-commerce firm for a purchase price of approximately $56.3 million and an estimated stabilized cap rate of 5.0%.
Year-to-date, Terreno Realty Corporation has acquired six industrial properties consisting of eight buildings containing approximately 637,000 square feet for an aggregate purchase price of approximately $274.1 million.
During the second quarter of 2026, Terreno Realty Corporation sold one property consisting of one building containing approximately 99,000 square feet for a sale price of approximately $31.1 million:
- One industrial distribution building containing approximately 99,000 square feet on 4.7 acres in Torrance, California, for a sale price of approximately $31.1 million. The property was purchased by Terreno Realty Corporation in January 2018 for approximately $17.5 million. The unleveraged internal rate of return generated by the investment was 10.3%.
Year-to-date, Terreno Realty Corporation has sold three properties consisting of four buildings containing approximately 386,000 square feet for an aggregate sale price of approximately $86.2 million.
During the second quarter of 2026, Terreno Realty Corporation completed the development and stabilization of Countyline Corporate Park Phase IV Building 34 in Hialeah, Florida. Building 34 is 100% leased to three tenants. Building 34 of Terreno Realty Corporation’s Countyline Corporate Park is a 220,000 square foot 36-foot clear height rear-load industrial distribution building on 13.0 acres with 76 dock-high and two grade-level loading positions and parking for 188 cars. The building is expected to achieve LEED certification, the total investment is $55.3 million and the estimated stabilized cap rate is 5.7%.
Year-to-date, Terreno Realty Corporation has completed the development and stabilization of two properties consisting of two industrial distribution buildings aggregating approximately 384,000 square feet, with a total expected investment of $98.7 million.
As of June 30, 2026, Terreno Realty Corporation had four properties under development or redevelopment that, upon completion, will consist of four buildings aggregating approximately 0.7 million square feet which are approximately 62.4% pre-leased, with a total expected investment of approximately $268.5 million.
Terreno Realty Corporation has approximately $26.1 million of acquisitions under contract and approximately $63.4 million of acquisitions under access agreements or letters of intent. Additionally, Terreno Realty Corporation has approximately $8.8 million of dispositions under contract where due diligence has completed and $15.0 million of dispositions under contract where due diligence has commenced. There is no assurance that Terreno Realty Corporation will acquire or dispose of the properties under contract, access agreements or letters of intent because the proposed acquisitions and dispositions are subject to the completion of satisfactory due diligence, closing conditions and, in the case of access agreements and letters of intent, contracts.
Capital Markets
During the second quarter of 2026, Terreno Realty Corporation issued 1,992,940 shares of common stock with a weighted average offering price of $66.46 per share under the Company’s at-the-market equity offering program, receiving gross proceeds of $132.4 million. During the six months ended June 30, 2026, Terreno Realty Corporation issued 4,074,228 shares of common stock with a weighted average offering price of $65.64 per share under the Company’s at-the-market equity offering program, receiving gross proceeds of $267.4 million. Terreno Realty Corporation did not repurchase any shares of common stock pursuant to the Company’s share repurchase authorization.
On June 12, 2026, Moody’s Ratings assigned Terreno Realty LLC, the operating subsidiary of Terreno Realty Corporation, a first-time issuer rating of Baa1 with a stable outlook. Terreno Realty Corporation currently holds a rating of BBB+ with a stable outlook from Fitch Ratings.
As of June 30, 2026, there were no borrowings outstanding under Terreno Realty Corporation’s $600 million revolving credit facility. On July 7, 2026, Terreno Realty Corporation utilized cash on hand to fund $50 million of debt maturities. 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 June 30, 2026 on or about August 5, 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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