O · Earnings call · 2026Q2T · Full report

Industrial Investment Demand

REALTY INCOME CORP · 2026-08-05 · Importance 44 · Surprise 24

Industrial represented approximately 65% of global real estate investments and about 75% of U.S. real estate investments during the quarter. Management cited sharply accelerating net absorption, declining vacancy, moderating development activity, and annual contractual rent escalators generally ranging from 2% to 3.5%. Demand extends beyond e-commerce to manufacturing, data center equipment storage, onshoring, and advanced manufacturing, with Realty Income emphasizing single-tenant, built-to-suit projects with best-in-class developers.

Key facts

• Approximately $800 million of U.S. pro rata investments in Q2 2026 were industrial assets, representing approximately 75% of U.S. real estate investments
• Industrial represented approximately 65% of global real estate investments in the quarter
• U.S. industrial fundamentals strengthened in the quarter with net absorption accelerating sharply, vacancy declined, and development activity began to moderate