Institutional investors are gravitating toward small-bay assets ahead of a broader industrial recovery, drawn by stronger income visibility, resilient demand, and more straightforward underwriting.
Terreno Realty’s shares have performed well but still appear modestly undervalued—by roughly 7%—suggesting that while the landfill-to-logistics strategy adds credibility to the story, its long-term value will depend on consistent execution rather than any single completed building.
Conventional wisdom suggested profits would be squeezed, prices would climb, and economic activity would slow. That outcome, however, never fully materialized.