Terreno Realty Exits Lanham Industrial Property for $11.1M

Event summary

  • Sold a 56,000 sq ft light industrial property in Lanham, MD on March 6, 2026.
  • Sale price: $11.1 million; purchased for $5.6 million in December 2013.
  • Property was 100% leased at time of sale; unleveraged IRR: 10.8%.
  • Part of Terreno's portfolio in Washington, D.C. market.

The big picture

Terreno's sale of this Lanham property reflects its strategy of optimizing holdings in high-demand coastal markets. The 10.8% unleveraged IRR underscores the value capture from long-term holds, though the exit comes amid broader industrial real estate sector dynamics where cap rate compression may be slowing.

What we're watching

Portfolio Rotation
Whether Terreno will accelerate asset sales in other coastal markets to rebalance its portfolio.
Capital Deployment
How proceeds from this sale will be reinvested, given the company's focus on high-barrier industrial locations.
Market Timing
The pace at which similar industrial properties in the D.C. metro area are trading amid shifting economic conditions.