BLP Bulletin - Q4 2025 Recap
- Bridge Logistics Properties
- Feb 26
- 7 min read
BLP’s Quarter in Review
“OUR VIEWS: MACROECONOMIC OUTLOOK AND THE LOGISTICS SECTOR”
While it would have been reasonable to expect muted tenant activity in 2025 following the year’s whipsawing volatility, logistics demand proved resilient and ultimately surprised to the upside. The year concluded as the second strongest for leasing on record¹, underscoring the durability of industrial fundamentals.
The Trump Administration’s “U.S. or bust” messaging is beginning to have measurable impacts on both aggregate demand and the composition of the industrial user base. Manufacturing leasing increased +60% year-over-year,
representing ~12% of total activity and ranking as the third-most active user type. This shift is particularly noteworthy: manufacturing growth tends to generate long-duration, positive tailwinds across the logistics sector, as both upstream suppliers and downstream distributors require additional space to support production. Retail
& wholesale users maintained their position as the second-most active cohort, though demand moderated. Third-party logistics providers (3PLs) remained the largest driver of activity, expanding their market share to 36% of total leasing as clients increasingly seek to diversify and de-risk supply chains. In aggregate, new leasing rose +9% and renewals +3%, generating a 7% year-over-year increase in total leasing activity².
On the supply-side, muted construction starts remained a defining feature of the market. 2025 saw 255M SF of starts, or just 1.4% of existing inventory - well below the functional obsolescence rate³. Further, more than one-third of supply currently under construction is spoken for, setting the stage for tightening fundamentals over
the next 12 to 18 months⁴. In BLP’s prime, coastal gateway markets⁵, development was even more constrained with starts representing only 0.6% of inventory.
As we approach the end of the current cycle and look ahead to the next, we see a number of constructive leading indicators. Credit liquidity is abundant, putting downward pressure on spreads, while valuations appear to have stabilized and are now trending upward⁶. Transaction activity continues to show signs of recovery following a prolonged period of price discovery and rate volatility, with third quarter volume totaling $14bn – nearly 20% above the 10-year quarterly average⁷. Public markets reflect similar momentum, as industrial REITs are currently trading at an implied nominal cap rate of 5.0%⁸, reflecting relatively tight risk premiums versus Treasurys.
BLP sees the next 3-years as critical for the logistics market with ~1.7bn square feet of leases expiring between 2026 and 2028⁹. While demand is inherently more difficult to forecast than supply, GDP growth remains a useful forward indicator given its strong historical correlation with industrial net absorption. GDP is also a clear area of policy focus for the current administration - a narrowing trade deficit and anticipated impacts from the recently passed One Big Beautiful Bill are expected to provide incremental support. As Apollo Chief Economist Torsten Slok recently shared¹⁰:
The CBO estimates that the One Big Beautiful Bill will boost GDP growth next year by 0.9%. The main factor in the bill is that, starting January 1, 2026, businesses can immediately deduct capital expenses, such as investments in equipment and R&D. This is a major tailwind for the economy in 2026.
This year reaffirmed that the fundamental drivers of U.S. logistics demand remain durable, and, while the macroeconomic environment continues to evolve, we believe the market is at a key inflection point.
At BLP, we continue to focus on executing our U.S. gateway, infill market strategy which is impossible to achieve without our great partners across the country. Thank you for your continued support and for being in our network.
Notes:
1 CBRE, The State of the U.S. Industrial & Logistics 1 Market, Dec. 2025
2 CBRE, The State of the U.S. Industrial & Logistics Market, Dec. 2025
3 CoStar Analytics as of Jan. 2026
4 CBRE, The State of the U.S. Industrial & Logistics Market, Dec. 2025
5 Defined as Ft. Lauderdale, Miami, Palm Beach, Inland Empire, Los Angeles, Orange County, New York, and
Northern NJ, as delineated by CoStar
6 CBRE Industrial & Logistics Capital Markets Webinar, Dec. 2025 & Green Street Advisors CPPI
7 Green Street Advisors as of Jan. 2026
8 Green Street Advisors as of Jan. 2026
9 CBRE, The State of the U.S. Industrial & Logistics Market, Dec. 2025
10 Apollo Chief Economist Torsten Slok, Significant Fiscal Boost Coming in 2026, as of December 2025
PORTFOLIO UPDATE: ACQUISITIONS
18305 San Jose Avenue, Industry, CA
18501 San Jose Avenue, Industry, CA
West Region (City of Industry, California)
BLP acquired two adjacent, fully leased industrial buildings totaling 450,000 SF in the City of Industry, CA. This property is located less than half a mile from SR-60, with access to Interstates 5, 10, and 15, connecting efficiently to the Ports of Los Angeles and Long Beach and major population centers across LA, Orange County, and the Inland Empire.
Tenant Profile: Fully leased to four tenants with a 3-year WALT, providing meaningful downside protection and insulation from near-term tariff-related volatility.
Market Context: The transaction resulted from a selective marketing process for a seven-building Southern California portfolio, with BLP focusing exclusively on the City of Industry assets given their superior functionality, strategic location, and strong in-place tenancy.
Strategic Alignment: This acquisition aligns with our broader strategy of targeting high-performing logistics assets in supply-constrained, high-demand infill markets.
100 John Rd., Canton, MA
111 Eames St., Wilmington, MA
1450 South Loop Rd., Alameda, CA
East & West Region (Boston, Massachusetts & Bay Area, California)
BLP is pleased to announce the acquisition of a 168,888-square-foot industrial portfolio located across multiple markets. These properties are located in infill urban centers adjacent to major interstates in Boston, Massachusetts, and the Bay Area, California.
Tenant Profile: These facilities are 100% leased to an S&P A+ credit-rated food distribution company.
Market Context: After a long history of successful transactions, the user presented this sale leaseback opportunity directly to BLP for a portfolio of irreplaceable distribution assets in core markets.
Strategic Alignment: This acquisition reinforces our strategy of acquiring high-barrier-to-entry logistics assets in dense, supply-constrained markets.
1755 Founders Parkway, Alpharetta, GA
Southeast Region (Alpharetta, Georgia)
BLP acquired 1755 Founders Parkway, a 41,850 SF industrial facility with rare standalone functionality in a highly supply-constrained infill pocket of the Atlanta market. 1755 Founders Parkway is located in the GA-400 submarket, which is a rapidly growing pro-business hub, home to over 900 tech companies with strong connectivity to Atlanta’s affluent northern suburbs, supporting sustained demand for light industrial space.
Tenant Profile: Fully leased to a creditworthy tenant with strong operational history.
Market Context: Acquired off-market from a private high-net-worth individual, with BLP’s speed of execution pre-empting a broader marketing process and providing the seller with certainty of liquidity.
Strategic Alignment: Further supports our strategy of acquiring highly functional logistics assets that benefit from population growth and have exceptional proximity to major population centers.
West Region (Fontana, California)
BLP acquired 10681 Production Avenue, a 1,101,900 SF Class A industrial distribution facility located in Fontana, California. This property is situated in the Inland Empire West, a key logistics hub that connects ports, transportation networks, and national distribution channels, with immediate access to the I-10 freeway.
Tenant Profile: The building is expected to be delivered vacant in Q1 2026, providing rare near-term availability in a market with limited new large-scale supply.
Market Context: This rare off-market bulk distribution acquisition reflects BLP’s decisive action during peak market dislocation.
Strategic Alignment: This acquisition reinforces BLP’s focus on global gateway markets with durable demand drivers and long-term barriers to entry.
CONSTRUCTION UPDATES
Construction Update: 485 Elizabeth Avenue, Somerset, NJ
Groundbreaking: 2/2025
Current Progress: Office Buildout
Estimated Completion: Q1 2026
Elizabeth Avenue is a 76,230 SF Class A industrial facility in Somerset, NJ. The development features 40' clear height, 10 dock-high loading positions, 1 drive-in door, a 135' concrete truck court, 2,000 SF of office space, and ample car parking with efficient site circulation.
Construction Update: Gateway @429, Orlando, FL
Groundbreaking: 7/2024
Current Progress: Near Completion
Estimated Completion: Q1 2026
Gateway@429 features Building 100, a 220,329 SF Class A rear-load warehouse including 3,140 SF speculative office suites. The building offers 62 dock-high doors, two ramp drive-in doors, 32-foot clear heights, a 130-foot truck court, and ample on-site parking.
Construction Update: Aerotropolis East Logistics Center
Groundbreaking: 3/2025
Current Progress: Roof Installed
Estimated Completion: Q2 2026
Aerotropolis East Logistics Center is a 229,776 SF Class A distribution facility in Atlanta, GA, strategically located in a federal approved Foreign Trade Zone two miles from Hartsfield-Jackson Atlanta International Airport. The development features 32' clear height, 42 dock-high doors, an 185' truck court, and ample car parking.
Construction Complete: Park South | GSW
Groundbreaking: 10/2024
Current Progress: Completed
Estimated Completion: Q4 2025
Park South | GSW is a 2-building, 284,865 SF Class A rear-load warehouse development featuring 24’-32’ clear heights and 190’ truck courts. Strategically located at the intersection of S. Great Southwest Parkway and Arkansas Lane, Park South | GSW offers excellent connectivity to the entire DFW Metroplex via SH 161, SH 360, I-20, and I-30.
Construction Progress: Southeast Crossing
Groundbreaking: 1/2025
Current Progress: Site Paving
Estimated Completion: Q1 2026
Southeast Crossing features 6 buildings ranging from 20,222 SF – 156,864 SF with 24-36’ clear heights,
outstanding visibility, ample car parking, and dock-high loading throughout.
Construction Progress: North Rialto Distribution Center
Groundbreaking: 4/2025
Current Progress: Final Grading
Estimated Completion: Q2 2026
North Rialto Distribution Center features a 468,563 SF Class A single-load building with 42’ clear height, 62 dock-high doors, a 236’ fully secured concrete truck court, 188 trailer parking stalls, and 264 auto parking spaces.
FEATURED AVAILABILITIES
ABOUT BLP
BLP is a vertically-integrated logistics real estate investment manager led by tenured, multi-disciplinary real estate professionals with experience navigating several economic environments over the past three decades. Its founding members and leadership team employ a disciplined investment strategy that is both cycle-tested and innovative. Founded in 2021, BLP is comprised of industrial real estate veterans with prior tenure at Brookfield, Prologis, IDI Logistics, Duke Realty, Hines, and KTR Partners.
Contact us today for more information about BLP.
Bridge Investment Group Holdings LLC (together with its affiliates, “Bridge”) is providing these materials (the “Materials”) regarding Bridge’s Logistics Properties strategy and the type of transactions targeted to you for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities in any vehicle managed by Bridge (“Fund”), including those managed by Bridge’s Logistics Properties strategy. Any such offer or solicitation of an offer will only be made pursuant to a Fund’s PPM. Statements contained herein are made as of Q4 2025 unless stated otherwise herein. No portion of the Materials may be forwarded, shared, reproduced, or distributed in any format without the express written approval of Bridge. This overview should not be regarded by the Recipient as a substitute for the exercise of their own judgment and the Recipient is expected to rely on their own due diligence if they wish to proceed further in investigating a potential investment in a Fund. This overview may contain forward-looking statements, including but not limited to targets, forecasts, estimates, opinions, and projections that involve elements of subjective judgment and analysis. These forward-looking statements are subject to various risks, and Bridge undertakes no obligation to update these forward-looking statements for events or circumstances that occur subsequent to such dates or to update or keep current any of the information contained herein. The Recipient should not construe the contents of this investment overview as legal, tax, accounting or investment advice or a recommendation. Bridge Logistics Properties Fund Manager LLC and Bridge Investment Group are trademarks of Bridge.
BRIN-20260219-5226736-16512976
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