Are industrial REITs a good investment?

Industrial REITs have historically been good investments. Over the past 30 years, the sector has delivered an average annual total return of 13.5%. That's the second-best in the industry and above the S&P 500 (12.3%). Past performance doesn't guarantee the sector will be a good investment in the future. However, the factors driving the sector growth in the past have strengthened in recent years. That makes industrial REITs look like good long-term investments.

What is the largest industrial REIT?

The largest industrial REIT by market cap is Prologis by a wide margin. Its market cap of nearly $130 billion in mid-2026 was more than 10 times that of its next-largest peer (EastGroup Properties at almost $11 billion).

How do industrial REITs differ from other types of REITs?

Industrial REITs differ from other REITs in that they focus primarily on industrial real estate, such as warehouses and manufacturing facilities. Another difference is the lease type. Industrial REITs typically sign long-term net leases, which differ from the shorter-term gross leases commonly signed by apartment and other REITs.

Are industrial REITs recession-proof?

Industrial REITs tend to be relatively recession-resistant. They typically sign long-term leases that provide them with stable rental income. While they often face tenant-related issues during recessions, the overall stability of their lease base makes the sector fairly recession-proof.

Do industrial REITs pay dividends?

Most industrial REITs pay dividends. The IRS requires all REITs to distribute 90% of their taxable net income to investors as dividends. If a REIT doesn't generate taxable income due to losses, it may suspend dividends until its financial profile improves.

What are some tax considerations when investing in industrial REITs?

The IRS taxes most REIT dividend payments, including most payments made by industrial REITs, as ordinary income. That's a higher tax rate than companies pay on qualified dividends, so it typically makes sense to hold shares of an industrial REIT in a retirement account where dividends are either deferred (in a traditional IRA) or exempt (in a Roth IRA).

What is the role of location in industrial REIT investments?

Location can play a crucial role in industrial REIT investments. Industrial markets along the coast tend to benefit from durable demand and supply shortages driven by global trade. Meanwhile, having warehouse space near a port, major highway, or airport is important to many companies, benefiting REITs that own properties in these locations.

Who should invest in industrial REITs?

Anyone can invest in industrial REITs. They're best suited for investors nearing or in retirement who desire passive dividend income. They're also ideal investments for those seeking a more stable investment supporting the growth of the industrial and e-commerce sectors.

7 Best Industrial REITs for 2026 and How to Invest

A closer look at the industrial REIT sector.

By Matthew DiLallo – Updated Aug 11, 2026 at 9:40 AM EST | Fact-checked by Frank Bass

Key Points

Prologis dominates the industrial REIT sector with a $130 billion market cap.
Americold Realty and Lineage Logistics focus on cold-storage, expanding via acquisitions, development projects, and expansions.
STAG Industrial invests in a broad array of properties and expects to allocate up to $650 million for new acquisitions in 2026.

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An infographic outlining the advantages and risks of investing in industrial real estate investment trusts (REITs). — Image source: The Motley Fool.

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Top seven industrial REITs for 2026

According to the National Association of Real Estate Investment Trusts (Nareit), there were 13 publicly traded industrial REITs in mid-2026. Here are the top seven ones for investors to consider:

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Ticker Information Table
Name and ticker	Current price	Market capMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.	Dividend yield
Prologis (NYSE:PLD)	$141.80	$134.4 billion	2.93%
Rexford Industrial Realty (NYSE:REXR)	$37.23	$8.3 billion	4.65%
Americold Realty Trust (NYSE:COLD)	$15.25	$4.4 billion	6.03%
Stag Industrial (NYSE:STAG)	$36.67	$7.1 billion	3.81%
Innovative Industrial Properties (NYSE:IIPR)	$56.71	$1.6 billion	13.40%
Lineage (NASDAQ:LINE)	$41.61	$9.5 billion	5.09%
EastGroup Properties (NYSE:EGP)	$201.00	$10.8 billion	3.08%

Data as of Aug 22, 2026. Showing 7 of 7 total entries.

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1. Prologis

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NYSE: PLD

Prologis

Today's Change

(0.80%) $1.12

Current Price

$141.80

Key Data Points

Market Cap

$134B

Day's Range

$140.26 - $141.86

52wk Range

$110.51 - $153.35

Volume

3.2M

Avg Vol

4.3M

Gross Margin

44.51%

Dividend Yield

2.93%

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Prologis (PLD +0.80%) is the largest industrial REIT by a wide margin and one of the largest REITs overall. Its nearly $130 billion market cap in mid-2026 was more than 10 times that of its next-largest peer (EastGroup Properties, at almost $11 billion). Prologis had investments in over 5,900 buildings encompassing roughly 1.3 billion square feet of space leased to about 6,500 tenants. The company has a global logistics business with operations in 20 countries.

Prologis stands out from other logistics-focused industrial REITs. It has a global reach; most rivals typically emphasize the U.S. market. Prologis also has an investment management platform, enabling it to earn management fees in addition to rental income, and has a global development platform (including developing data centers), which enhances its growth prospects. Additionally, Prologis has a growing energy platform, including on-site solar, energy storage, and EV charging infrastructure. These differences have enabled Prologis to grow faster than other logistics REITs over the years.

The leading industrial REIT is about to grow even larger. In August 2026, it agreed to buy U.K.-based industrial REIT SERGO in a $19 billion deal. It will expand Prologis' footprint in Europe by 47% and its landbank on the continent by 126%.

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2. Americold Realty Trust

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NYSE: COLD

Americold Realty Trust

Today's Change

(1.53%) $0.23

Current Price

$15.25

Key Data Points

Market Cap

$4.4B

Day's Range

$15.04 - $15.35

52wk Range

$10.10 - $16.88

Volume

2.1M

Avg Vol

4.3M

Gross Margin

17.12%

Dividend Yield

6.03%

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Americold Realty Trust (COLD +1.53%) is one of two publicly traded REITs focused on cold-storage properties. As of mid-2026, the company owned and operated more than 230 temperature-controlled warehouses with about 1.5 billion cubic feet of storage worldwide. Americold leases space in its facilities to food manufacturers, distributors, and retailers. The REIT also manages third-party-owned facilities and provides transportation services.

Americold has been a serial acquirer, enabling it to build the world's second-largest portfolio of temperature-controlled warehouses. Its scale provides additional growth opportunities, including the acquisition of cold-storage facilities and the construction of new facilities to support its customers. In May 2026, Americold formed a $1.3 billion North American cold storage joint venture with leading global investment fund EQT, which will help strengthen its balance sheet and support its growth, including the potential development of new cold storage warehouse facilities in North America.

3. STAG Industrial

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NYSE: STAG

Stag Industrial

Today's Change

(0.83%) $0.30

Current Price

$36.67

Key Data Points

Market Cap

$7.1B

Day's Range

$36.54 - $36.91

52wk Range

$34.40 - $42.61

Volume

2.1M

Avg Vol

1.6M

Gross Margin

43.86%

Dividend Yield

3.81%

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Stag Industrial (STAG +0.83%) owns a diversified portfolio of industrial real estate. It had more than 600 buildings totaling over 122 million square feet of space across 41 states in mid-2026, including warehouses, light manufacturing facilities, and flex/office space. It leases its buildings to single tenants under triple-net leases. STAG is also highly diversified across tenants, markets, and industries.

Stag Industrial grows by investing in new properties. It will acquire stabilized industrial properties, purchase properties with value-add upside from securing new leases or completing expansion projects, and pursue development projects. The REIT expects to invest $350 million to $650 million into new property acquisitions in 2026 and has 4.1 million square feet of active development projects.

4. Innovative Industrial Properties

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NYSE: IIPR

Innovative Industrial Properties

Today's Change

(-0.04%) $-0.02

Current Price

$56.71

Key Data Points

Market Cap

$1.6B

Day's Range

$56.37 - $57.42

52wk Range

$44.58 - $65.38

Volume

199.4K

Avg Vol

369.9K

Gross Margin

60.08%

Dividend Yield

13.40%

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Innovative Industrial Properties (IIPR -0.04%) focuses on owning specialized industrial properties leased to state-licensed cannabis operators. As of mid-2026, the company owned nearly 110 properties across 19 states. Additionally, the REIT funded a $270 million investment in IQHQ as part of its strategy to expand into the life sciences industry to diversify its portfolio.

Innovative Industrial Properties helps provide capital to the cannabis sector. It completes sale-leaseback transactions to acquire dispensaries, cultivation facilities, processing facilities, manufacturing facilities, and other properties that it leases back to regulated operators, thereby providing them with the capital to continue expanding their operations. Meanwhile, its IQHQ investment has consisted of a revolving credit facility and a growing preferred equity investment.

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5. Rexford Industrial Realty

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NYSE: REXR

Rexford Industrial Realty

Today's Change

(0.49%) $0.18

Current Price

$37.23

Key Data Points

Market Cap

$8.3B

Day's Range

$37.00 - $37.63

52wk Range

$32.14 - $44.38

Volume

2.5M

Avg Vol

2.7M

Gross Margin

45.94%

Dividend Yield

4.65%

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Rexford Industrial (REXR +0.49%) is a pure-play industrial REIT focused solely on Southern California. It's one of the largest industrial markets in the world, benefiting from high demand, low supply, and high barriers to entry. Those market conditions keep occupancy high, driving healthy rental growth.

The REIT owns about 410 properties in Southern California, totaling almost 50 million square feet. It steadily expands its portfolio by acquiring new properties, often to add value through leasing, expansion, or redevelopment.

Rexford was realigning its portfolio in 2026. It aims to sell $1.5 billion to $2 billion in non-core assets to strengthen its portfolio, enhance cash-flow durability, and increase its financial flexibility.

6. Lineage Logistics

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NASDAQ: LINE

Lineage

Today's Change

(0.36%) $0.15

Current Price

$41.61

Key Data Points

Market Cap

$9.5B

Day's Range

$41.48 - $42.02

52wk Range

$31.33 - $45.75

Volume

387.7K

Avg Vol

Gross Margin

14.67%

Dividend Yield

5.09%

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Lineage Logistics (LINE +0.36%) is the world's biggest temperature-controlled warehouse REIT. The company owns over 500 warehouses with 3.1 billion cubic feet of space across 19 countries. It's more than double the size of its closest rival (Americold).

Lineage has become the dominant player in cold storage through a series of acquisitions that have rolled up the highly fragmented sector. It also invests in development and expansion projects. The REIT had several projects under construction in 2026 at a total remaining cost of over $500 million.

7. EastGroup Properties

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NYSE: EGP

EastGroup Properties

Today's Change

(-0.07%) $-0.14

Current Price

$201.00

Key Data Points

Market Cap

$11B

Day's Range

$199.70 - $203.53

52wk Range

$163.10 - $226.71

Volume

391.7K

Avg Vol

428.5K

Gross Margin

44.05%

Dividend Yield

3.08%

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EastGroup Properties (EGP -0.07%) is a warehouse REIT focused on high-growth markets in the Sun Belt region. The company primarily owns clusters of smaller facilities (20,000-100,000 square feet) near major transportation infrastructure. It owned about 65.8 million square feet of warehouse space in mid-2026.

EastGroup has built over half of its portfolio from the ground up. It has invested $3.6 billion to develop 281 properties with 33.3 million square feet since 1996. It builds in park-like settings. This strategy delivers higher returns with lower risk.

The REIT also acquires properties near its existing locations. It focuses on value-add opportunities such as vacant properties or those with expansion potential. It had 17 projects totaling 3.2 million square feet, with total projected costs of nearly $500 million, underway in mid-2026.

How to invest in industrial REITs

Here's a step-by-step guide on how to invest in industrial REITs:

Open your brokerage app: Log in to your brokerage account where you handle your investments. If you don't have one yet, take a look at our favorite brokers and trading platforms to find the right one for you.
Search for the stock: Enter the ticker into the search bar to bring up the stock's trading page.
Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
Submit your order: Confirm the details and submit your buy order.
Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.

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Benefits and risks of investing in industrial REITs

Industrial REITs have a lot to offer investors, including:

Upside to the growth of e-commerce: Rising online sales are increasing the need for more warehouse space, which these REITs provide.
Cashing in on supply chain issues: Disruptions are prompting many companies to lease additional warehouse space to store extra inventory.
Capitalizing on onshoring manufacturing: Tariffs and other catalysts are prompting many companies to bring manufacturing back to the U.S. due to supply chain issues and other factors, creating new growth opportunities for industrial REITs.
Stable cash flows: Industrial REITs typically enter into long-term triple-net leases (NNN). These leases produce stable cash flow, often making the sector relatively recession-resistant.
Passive income: Most industrial REITs pay dividends, providing investors with a steady stream of income.
Diversification: Investing in industrial REITs can help diversify your portfolio.

The industrial real estate industry isn't without risk. Notable risk factors to consider include:

Overbuilding: Many industrial REITs develop new properties on speculation, without securing a tenant before construction begins. Problems arise when developers build too much speculative capacity in certain markets, leading to declines in occupancy levels and rental rates.
Tenant troubles: Tenants may face financial difficulties that can affect their ability to pay rent. That can affect a REIT's financial results until it finds replacement tenants for those properties.
Interest rates: Rising interest rates can increase a REIT's interest expenses, affecting its cash flows. It can also make it more expensive to fund new developments and acquisitions.

Methodology: How these stocks were chosen

I analyzed industrial REITs based on the following characteristics:

High-quality portfolio: Evaluated their portfolios based on property type, geography, and tenant base.
Strong occupancy rate: Considered occupancy, seeking those with a high rate (above 90%) that's stable-to-growing.
Funds from operations (FFO) growth rate: An industrial REIT should ideally grow its FFO per share at a mid-single-digit rate.
Dividend payout ratio: The REIT should have a dividend payout ratio below 75% of its FFO.
Leverage ratio: An industrial REIT should maintain a sub-6.0x leverage ratio.

These industrial REITs all scored well on these desired traits, making them stand out from the rest of the sector.

Should you invest in industrial REITs?

Industrial real estate is in high demand due to the rise of e-commerce, supply chain disruptions, and the onshoring of manufacturing in the U.S. That's benefiting REITs focused on these properties, enabling them to capitalize on rising rents and invest in development projects. Add that growth to the income these REITs provide, and they're a solid addition to any portfolio.

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Investing in industrial REITs: FAQ

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About the Author

Matt DiLallo has been a contributing Motley Fool stock analyst specializing in the energy, industrials, and real estate sectors since 2012. He also covers dividend-paying stocks, pre-IPO companies, ETFs, and other investing topics. He holds an MBA from Liberty University.

TMFmd19

@MatthewDiLallo

Matt DiLallo has positions in EastGroup Properties, Prologis, Rexford Industrial Realty, and Stag Industrial. The Motley Fool has positions in and recommends Prologis. The Motley Fool recommends EastGroup Properties, Innovative Industrial Properties, and Stag Industrial. The Motley Fool has a disclosure policy.

7 Best Industrial REITs for 2026 and How to Invest

A closer look at the industrial REIT sector.

Key Points

Top seven industrial REITs for 2026

1. Prologis

Key Data Points

2. Americold Realty Trust

Key Data Points

3. STAG Industrial

Key Data Points

4. Innovative Industrial Properties

Key Data Points

5. Rexford Industrial Realty

Key Data Points

6. Lineage Logistics

Key Data Points

7. EastGroup Properties

Key Data Points

How to invest in industrial REITs

Benefits and risks of investing in industrial REITs

Methodology: How these stocks were chosen

Should you invest in industrial REITs?

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Investing in industrial REITs: FAQ

Are industrial REITs a good investment?

What is the largest industrial REIT?

How do industrial REITs differ from other types of REITs?

Are industrial REITs recession-proof?

Do industrial REITs pay dividends?

What are some tax considerations when investing in industrial REITs?

What is the role of location in industrial REIT investments?

Who should invest in industrial REITs?

1. Prologis

2. Americold Realty Trust

5. Rexford Industrial Realty

Benefits and risks of investing in industrial REITs

Methodology: How these stocks were chosen

Should you invest in industrial REITs?

Related investing topics

Top seven industrial REITs for 2026

Key Data Points

Key Data Points

Key Data Points

Key Data Points

4. Innovative Industrial Properties

How to invest in industrial REITs

7. EastGroup Properties

Key Data Points

6. Lineage Logistics

Key Data Points

Key Data Points

3. STAG Industrial