JLL Income Property Trust Makes Industrial 38% Top Holding in $7 Billion Portfolio
Updated
Updated · CNBC · Jun 30
JLL Income Property Trust Makes Industrial 38% Top Holding in $7 Billion Portfolio
2 articles · Updated · CNBC · Jun 30
Summary
Industrial has overtaken residential as JLL Income Property Trust’s biggest allocation, reaching 38% of the REIT’s roughly $7 billion portfolio.
Returns are driving the shift: CEO Allan Swaringen said warehouses now offer 5.5% to 6.5% cash-on-cash yields versus about 4.5% for apartments.
Leasing strength is reinforcing that bet, with Q1 2026 industrial leasing up 17.8% year over year to 145 million square feet; 72% of deals were new leases.
JLL said vacancy held at 7.5% but should fall as supply is absorbed and new construction stays flat after an earlier bout of speculative overbuilding.
Swaringen expects demand to keep rising as higher transport costs, Middle East-linked defense spending, domestic manufacturing growth and backup supply chains increase the need for well-located warehouses.