Industrial now 36% of Blackstone’s RE portfolio

Investment firm slashed exposure to retail, hotels since 2015

National /
Jan.January 19, 2021 11:15 AM
Blackstone's Ken Caplan (iStock; Blackstone)

Blackstone’s Ken Caplan (iStock; Blackstone)

In the past five years, Blackstone has pivoted its portfolio away from retail and hotels and instead turned toward one of real estate’s hottest asset classes — industrial — helping the investment firm avoid losses that others are now facing.

The company bolstered its presence in the industrial sector to account for 36 percent of its real estate equity value, up from only 9 percent in 2017, according to the Wall Street Journal. Demand for industrial space has boomed since the onset of the pandemic due to the rise of e-commerce.

In contrast, the company’s retail portfolio, valued at $341 billion, made up approximately 5 percent of its equity value, down from 19 percent in 2015. Hotels account for just 7 percent of the equity value, down from 23 percent in 2015.

“You had multiple years of expected growth [in online retail] compressed into the past year,” the firm’s co-head, Kenneth Caplan, told the Journal.

Blackstone also said that traditional office space only accounts for 5 percent of its equity value, down from 19 percent in 2015.

The firm has instead shifted its focus on specialized office space, such as biotechnology and life sciences labs and Hollywood studios.

[WSJ] — Keith Larsen


Related Articles

arrow_forward_ios
The rate of loans sent to special servicers continued to fall in March. (Unsplash)
CMBS special servicing rate declines in March
CMBS special servicing rate declines in March
Tesla’s Gigafactory (Tesla)
Over 340M sf of industrial space set for delivery in 2021
Over 340M sf of industrial space set for delivery in 2021
JLL CEO Christian Ulbrich. (Getty)
JLL explores sale of China property management wing
JLL explores sale of China property management wing
Dollar General CEO Todd Vasos (Retail Industry Leaders Association, iStock)
Dollar General thrives amid retail apocalypse
Dollar General thrives amid retail apocalypse
Bill Lee (Lee & Associates/YouTube)
Lee & Associates founder Bill Lee dies
Lee & Associates founder Bill Lee dies
The vacancy rate for regional and superregional malls is at an all-time high. (Getty)
Mall vacancy rate hits all-time high
Mall vacancy rate hits all-time high
Gores Group’s Alec Gores and Dean Metropoulos with Sonder CEO Francis Davidson (Getty, Linkedin)
Sonder considers going public via SPAC
Sonder considers going public via SPAC
Lee Shau Kee, Glenn Sanford and Rich Barton (Getty, iStock)
These US real estate titans made Forbes’ 2021 billionaires list
These US real estate titans made Forbes’ 2021 billionaires list
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...