Peakstone Realty Trust completed the sale of a two‑property office and research‑and‑development campus in Burlington, Massachusetts, on November 14, 2025. The 431,000‑square‑foot portfolio was sold for $84.5 million, a price of $196 per square foot that reflects the high value of the site’s mixed‑use configuration.
The transaction is a key milestone in Peakstone’s transition to an industrial‑only real‑estate investment trust. By divesting a sizable office asset, the company is reducing exposure to a market that has seen declining demand and is reallocating capital toward its high‑growth industrial outdoor storage (IOS) segment, which has benefited from e‑commerce expansion and limited supply.
Proceeds from the sale strengthen Peakstone’s balance sheet and support the company’s deleveraging plan. In the third quarter of 2025, the company reduced net debt by roughly $450 million and earmarked additional sales proceeds for further debt paydown, positioning the trust for future acquisitions in the IOS market.
Peakstone’s third‑quarter 2025 results underscored the effectiveness of the strategy. Revenue reached $25.8 million, up from $24.1 million in the same quarter a year earlier, driven by robust leasing activity in the IOS portfolio. Net income of $3.5 million, or $0.09 per share, reflected disciplined cost management and the absence of significant one‑time charges. Core funds from operations rose to $0.48 per share, and adjusted funds from operations climbed to $0.47 per share, while same‑store cash net operating income increased 3.7% year over year, indicating healthy cash generation from the core industrial assets.
CEO Michael Escalante highlighted the progress of the transformation, noting that the sale “demonstrates our commitment to building a portfolio that delivers consistent cash flow and growth.” He added that the company plans to complete the remaining office sales by the end of 2025 and will use the proceeds to accelerate IOS acquisitions and further reduce debt.
The IOS sector continues to experience strong demand from e‑commerce and logistics operators, and the limited supply of suitable sites has driven rent growth. Peakstone’s focus on this segment aligns with broader market trends and positions the trust to capture upside in a high‑margin, high‑growth niche.
By divesting a large office asset and reinforcing its industrial focus, Peakstone Realty Trust is advancing its strategic transformation, improving its balance sheet, and positioning itself for sustained growth in the industrial outdoor storage market.
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