Two new leases totaling more than 2.7M SF resolve ILPT’s two largest portfolio vacancies.

Indianapolis: a 532,364 SF big-box distribution facility on a ~10-year lease, back to full occupancy after sitting vacant since August 2024.

Kapolei, HI: a 2,237,547 SF, 53-year ground lease on one of ILPT’s largest Hawaii parcels, commencing July 1.

Portfolio occupancy rises to approximately 98%.

A long-vacant big box finally cleared — a read on where distribution demand is landing — while an ultra-long ground lease monetizes land with no capital outlay.

The Indianapolis backfill matters because the building sat empty for nearly two years. In a market where 3PLs and shippers turned cautious, a 532K SF box returning to a decade-long lease says demand for well-located big-box distribution is still there — it just took time to price.

The Hawaii deal is the structurally interesting one. A 53-year ground lease converts a hard-to-sell land parcel into decades of contractual income with no development capital from the landlord. The tenant funds improvements; ILPT keeps the land and the rent.

For a REIT that has carried a heavy floating-rate balance sheet, moving occupancy to ~98% and locking in multi-decade income is a de-risking event ahead of its July 30 earnings call.

Two lessons for owners: patient big-box vacancy can still clear on long terms when the location is right, and ground leases are an underused tool to extract value from land you would rather not sell or develop. Both improve WALT without new capital.

Occupancy at 98% and a 53-year ground lease do more for a levered industrial REIT than any single sale could.

Source: ILPT / Businesswire · StockTitan · citybiz — June 10, 2026