Lincoln Property Companys Logistics Fund II bought Canyon Road Commerce Center in Puyallup Washington roughly 275000 SF across two Class A buildings for $37.2M or about $135 per SF. Sellers were Trammell Crow Co and an affiliate of CBRE Investment Management.
While Sun Belt distribution boxes trade on population growth this Pacific Northwest deal is underwritten to a different engine aerospace and advanced manufacturing demand in the South Sound corridor south of Seattle Tacoma. Specs include 32 to 36 foot clear heights 21 dock doors per building and heavy power.
The roughly $135 per SF basis on Class A product is a value add entry. Lincoln is buying below replacement and betting on lease up velocity not clipping an in place yield and has launched a campaign targeting manufacturing users. It is the funds third acquisition.
Implications: Advanced manufacturing industrial is a distinct sub thesis from distribution logistics. Expect more value add capital targeting manufacturing capable Class A near aerospace and defense clusters.
Key Takeaways
- Not every warehouse is a distribution play this one is underwritten to aerospace
- The return lives in the lease up not an in place coupon
Connect CRE Jul 29 2026 Lincoln Property Company Acquires 275K SF Puyallup Industrial Campus · REBusinessOnline Jul 29 2026 Lincoln Property Co Acquires 275000 SF Canyon Road Commerce Center · The Registry Jul 2026 Lincoln Buys 274690 SQFT Canyon Road for $37.2MM
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