JLL investment arm increases industrial real estate exposure

JLL Income Property Trust has made industrial real estate its largest portfolio allocation, overtaking residential as the firm increases its focus on warehouses and logistics assets. The REIT, which manages about $7 billion in assets, now has 38% of its portfolio in industrial properties. The move comes as industrial leasing showed stronger momentum early in 2026, with JLL reporting a 17.8% increase in firstquarter leasing activity from a year earlier. About 145 million square feet were leased in the quarter, and most of it reflected new leases. JLL said the market was helped by tenant consolidation, demand for higherquality space, and limited new construction. Allan Swaringen, chief executive of JLL IPT, said the firm sees industrial as more attractive than multifamily right now because warehouse properties are generating higher cashoncash returns. He pointed to rising transportation and energy costs, growing defense and manufacturing needs, and companies’ efforts to build more resilient supply chains as factors supporting demand for industrial space.