Terreno Realty sold a 99,000‑sq‑ft industrial property in Torrance, California for $31.1 million on April 7, 2026. The asset, located in a high‑demand infill zone, had been owned by the REIT since January 2018 when it was purchased for $17.5 million, delivering an unleveraged internal rate of return of 10.3%.
The sale is a key element of Terreno’s disciplined capital‑recycling program, which seeks to monetize mature assets that have already produced strong returns and redirect the proceeds into higher‑growth opportunities within the company’s core coastal markets. By divesting this property, Terreno frees capital that can be deployed in infill locations where tenant demand remains robust and cash rent growth is high.
The $31.1 million proceeds are being added to Terreno’s cash balance, bolstering liquidity and providing flexibility for future acquisitions or refinancing. The transaction is part of a broader Q1 2026 disposition volume of $86.2 million year‑to‑date, compared with $386.4 million in total dispositions for 2025, underscoring the REIT’s active portfolio optimization.
In the same quarter, Terreno completed acquisitions totaling $101.8 million and had $24.4 million in acquisitions under contract or letter of intent. Portfolio occupancy rose to 96.3% from 96.1% in the prior quarter, and same‑store occupancy reached 97.6%. Cash rent growth for new and renewed leases climbed 22.4%, reflecting strong demand in the industrial sector.
Strategically, the Torrance sale exemplifies Terreno’s focus on infill industrial assets that offer high tenant demand and stable cash flows. By recycling capital from mature holdings, the REIT enhances its financial flexibility, supports continued portfolio expansion in high‑growth coastal markets, and positions itself to capture opportunities that deliver superior returns relative to the existing asset base.
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