3 Industrial REITs Well-Positioned to Deliver Strong Growth in 2026

Core Insights - The U.S. industrial real estate market is resilient, supported by e-commerce growth and declining supply, which is expected to strengthen industrial REITs [2][4][6] Industry Overview - E-commerce is transforming consumer shopping and logistics, driving demand for efficient supply chains and modern logistics infrastructure [4] - Companies are increasingly integrating AI to enhance supply-chain efficiencies, further propelling demand for industrial real estate [4] - The demand is concentrated in high-quality assets with modern amenities, leading to a performance gap between new and older properties [5] - The vacancy rate in the industrial real estate market is projected to reach 7% by year-end, peaking in mid-2026 [5] - Tariffs have impacted import volumes, but a shift towards domestic manufacturing and near-shore production is expected to sustain demand for industrial spaces [6] Market Performance - U.S. industrial net absorption improved by 30% quarter over quarter and 33% year over year in Q3 [7] - Asking rent growth remains positive, with a forecasted rebound to 3-4% in 2026 as demand and supply rebalance [7] Company Highlights Prologis Inc. (PLD) - Prologis focuses on industrial distribution warehouse space in key markets, benefiting from strategic locations near transportation hubs [9] - The company is engaged in numerous build-to-suit projects and is converting warehouses into data centers to leverage growth in that sector [10] - The Zacks Consensus Estimate for 2026 FFO per share is $6.09, indicating a 4.9% year-over-year growth [12] STAG Industrial (STAG) - STAG specializes in single-tenant industrial properties, with a portfolio of 601 buildings across 41 states, totaling 119.2 million square feet [13] - The company benefits from e-commerce growth, with 31% of its portfolio focused on e-commerce activities [14] - STAG's portfolio is strategically located near Megasite projects, enhancing demand for its warehouse spaces [14] - The Zacks Consensus Estimate for 2026 FFO per share is $2.66, reflecting a 5.1% year-over-year growth [16] Industrial Logistics Properties Trust (ILPT) - ILPT owns 411 properties across the U.S., with a high leasing rate of 94.1% and a weighted average lease term of 7.4 years [17] - The majority of its rental revenues come from investment-grade tenants, providing stable income [18] - ILPT executed leases for 2.5 million square feet in the first half of 2025, indicating strong demand for its portfolio [19] - The Zacks Consensus Estimate for 2026 FFO per share is $1.14, suggesting a significant 20% year-over-year growth [19]