A version of this article first appeared in the CNBC Property Play newsletter with Diana Olick. Property Play covers new and evolving opportunities for the real estate investor, from individuals to venture capitalists, private equity funds, family offices, institutional investors and large public companies. Sign up to receive future editions, straight to your inbox. Industrial is perhaps the least sexy sector in real estate, but it is fast becoming one of the hottest. Fundamentals are improving, new supply is being absorbed, and global political and economic factors are fueling demand. Industrial recently replaced residential as JLL Income Property Trust’s largest allocation. It is 38% of the portfolio, which holds roughly $7 billion of total assets under management. JLL IPT is a daily valued, perpetual life REIT advised by LaSalle and sponsored by JLL. Allan Swaringen, CEO of JLL IPT, calls himself “bullish” on industrial, as new opportunities continue to present themselves and returns are now better than in multifamily. “We can buy warehouses today where the cash-on-cash return is 5.5% to 6.5%, yet apartments today are trading where the cash-on-cash return is 4.5%. It’s a better option for us to get higher returns in today’s market,” said Swaringen. Industrial leasing strengthened to start the year, rising 17.8% during the first quarter of 2026 from the same period in 2025, according to JLL. Roughly 145 million square feet of leasing was executed, and 72% of that was new leases. The first quarter historically underperforms the rest of the year, but this Q1 showed outsized strength. Performance was largely driven by ongoing flight-to-quality trends and tenant consolidation int …
