Denver, Houston Industrial Assets Drive 2.1M SF Portfolio Transaction
A 2.1M SF industrial portfolio spanning Denver, Houston and northern New Jersey has traded hands.
Principal Asset Management and an unnamed state-sponsored pension plan acquired the 10-building, 96.7% leased portfolio for an undisclosed price. JLL Capital Markets facilitated and announced the sale.
The portfolio includes five Denver properties, four in southwest Houston and one in New Jersey. The buildings average 210K SF with 32-foot clear heights, according to a JLL press release.
The five Denver properties make up 56% of the portfolio's total square footage and are located between downtown and the airport. Airport East recorded an 11.9% direct vacancy rate across 45.9M SF in the fourth quarter of 2024, while Airport Central’s vacancy was just 4.3% across 56.1M SF, according to CBRE data.
The deal comes as Denver’s industrial market shows signs of stabilizing after a period of elevated vacancy. Developers have pulled back on speculative projects, with completions down 18.2% year-over-year in Q4 and vacancy tightening to 7.6%, according to CBRE.
In Houston, which makes up 34% of the portfolio, industrial demand remains strong despite challenges like high land prices, selective capital markets and power connection delays of a year or more. Panelists at Bisnow’s recent Future of Houston Industrial event said competition for land has heated up again, with net absorption staying healthy and rent growth expected to continue.
“This portfolio transaction demonstrates the continued favor that high-quality assets in strategic markets enjoy with investors,” JLL Senior Managing Director Trent Agnew said in a statement.
Agnew, along with JLL's John Huguenard, Peter Merrion, John Plower, Patrick Nally, Charlie Strauss, William McCormack and Robert Key led the sales effort.
