Global Net Lease, an investment firm specializing in industrial properties, agreed to acquire a similar, albeit smaller, company for $535 million as demand rises for warehouse, logistics and similar properties across the United States.
The New York company is buying fellow real estate investment trust Modiv Industrial in an all-stock transaction, pending approval by Modiv shareholders, the companies said Monday. The sale is expected to close by Sept. 30.
Demand is expected to overtake supply in the U.S. industrial market in early 2027, a trend that could result in rent growth for landlords, according to Juan Arias, national director of U.S. industrial analytics for CoStar. The national vacancy rate stands at 7.6%, according to CoStar data, and it's expected to peak at 7.8% by the end of 2026, Arias said.
Modiv owns 42 properties in 14 states, with a majority in California. Most of its portfolio is industrial, but Modiv also owns retail and office properties. The company collected $39.1 million in annual base rent in 2025, according to its latest annual report.
Modiv touts its portfolio as "mission-critical industrial properties across the United States" that are leased to tenants that strengthen the nation's supply chains.
"We have long believed that our portfolio's quality was historically mispriced by the marketplace and that we would be receptive if someone sought to close the value gap sooner than we could," Modiv CEO Aaron Halfacre said in the statement.
Global Net Lease and Modiv did not respond to email requests for comment from CoStar News.
Modiv had received "substantial interest from a range of suitors, including multiple unsolicited offers" over the past 12 months, but Global Net Lease provided the best opportunity for long-term growth, Halfacre said. He did not identify the other companies that expressed interest in Modiv.
Modiv's largest customer is Lindsay Precast. The concrete manufacturer accounts for 14.5% of Modiv's rental income, according to Modiv's latest annual report.
Tenants of properties owned by Global Net Lease are required to pay a predetermined amount toward operating expenses, such as the maintenance of common areas, taxes and insurance, according to the publicly traded REIT's annual report. Modiv, based in Denver, also requires tenants to take net leases, and most of its properties have a single tenant, according to regulatory filings.
Global Net Lease has been gradually disposing of nonindustrial assets in its portfolio. Last year, it sold 99 retail properties to RCG Venture Holdings for $1.8 billion. Global Net Lease's portfolio includes 820 properties totaling 41 million square feet across the U.S. and Western and Northern Europe as of the end of 2025.
For the record
BMO Capital Markets is financial adviser to Global Net Lease. Paul, Weiss, Rifkind, Wharton & Garrison and Greenberg Traurig are legal counsel. Truist Securities is adviser to Modiv, and Morrison & Foerster and Venable are legal counsel.