Private equity giant Blackstone is making a $718M bet on the U.S. warehouse industry despite inconsistent tariff policies that threaten to ignite a global trade war.

The world’s largest real estate owner is buying a 95% stake in a 6M SF industrial portfolio developed by Dallas-based Crow Holdings. Crow Holdings will retain 5% ownership in the 25-property portfolio, which is predominantly in the Dallas and Houston metropolitan areas.

“With limited vacancy and new construction starts down over 80% from the 2022 peak, logistics remains a high conviction theme for us,” David Levine, co-head of Americas acquisitions for Blackstone Real Estate, said in a press release.

The acquisition adds to Blackstone's $170B worth of warehouses, $90B of which is in the U.S., Levine said. Core-plus funds affiliated with Blackstone Real Estate were used for the transaction, according to the release.

Although analysts have predicted a slowdown in the industrial market due to Trump administration trade policy freezing projects and worsening fundamentals, Blackstone's acquisition marks the second half-billion-dollar industrial acquisition in a month.

Starwood Capital paid $685M for a portfolio of 38 warehouses from Goldman Sachs Group and Dalfen Industrial late last month, Bloomberg reported.

Blackstone's transaction is expected to close by the end of this quarter.

“This transaction is another example of Blackstone Real Estate deploying capital during this period of market volatility,” Levine said. “We are thrilled to acquire this high-quality portfolio located in some of the best performing U.S. industrial markets.”