Terreno Realty Corporation Acquires Property in Tukwila, WA for $27.1 Million

Key Terms

stabilized cap rate financial

Stabilized cap rate is the annual income a property is expected to generate after normal operating expenses — assuming typical occupancy and renting levels — expressed as a percentage of its value. It matters to investors because it acts like a yield or interest rate for real estate, letting them compare expected returns and risk across properties or investments much like comparing bond yields or a price-to-earnings ratio for stocks.

net operating income financial

Net operating income is the profit a business makes from its core operations after subtracting the costs directly related to running those operations, but before accounting for taxes, interest, or other expenses. It shows how efficiently a company is generating income from its main activities. Investors use this figure to assess the company's operational performance and profitability.

capital expenditures financial

Capital expenditures are the money a company spends to buy or improve big assets like buildings, equipment, or machines that will last a long time. These investments matter because they help the company grow and operate more efficiently, similar to how upgrading a home’s appliances or adding a new room can make it better and more valuable.

leasing costs financial

Leasing costs are the regular payments and related expenses a business incurs to use rented assets such as buildings, vehicles, or equipment, including rent, maintenance, insurance, and lease fees. Investors care because these costs reduce cash flow and profit, affect a company’s financial flexibility, and reveal whether a business is choosing to rent rather than buy — like paying a monthly subscription instead of owning an appliance, which can make results more predictable but may raise long‑term expense.

dock-high technical

A dock-high loading area is a warehouse or distribution door built at a standard elevated height so truck trailers sit level with the warehouse floor for direct loading and unloading. Think of it like a raised driveway that lets forklifts roll straight into a van instead of using a ramp. Investors care because dock-high facilities move goods faster, reduce labor and equipment needs, and are more attractive to tenants, all of which affect operating costs and property value.

BELLEVUE, Wash.--(BUSINESS WIRE)-- Terreno Realty Corporation (NYSE:TRNO), an acquirer, owner and operator of industrial real estate in six major coastal U.S. markets, acquired an industrial property located in Tukwila, Washington on December 12, 2025 for a purchase price of approximately $27.1 million.

The property consists of one industrial distribution building containing approximately 121,000 square feet on 7.1 acres. The property is at 510 Andover Park West in the northern Kent Valley, less than one mile from the intersection of I-5 and I-405, and provides 19 dock-high, two ramped and three grade-level loading positions and parking for 122 cars. The property is 100% leased to one tenant expiring February 2027. After tenant expiration Terreno Realty Corporation expects to renovate the property to allow leasing for one to four tenants. The estimated stabilized cap rate prior to such renovation and releasing is 3.9%.

Estimated stabilized cap rates are calculated as annualized cash basis net operating income stabilized to market occupancy (generally 95%) divided by total acquisition cost. Total acquisition cost includes the initial purchase price, the effects of marking assumed debt to market, buyer’s due diligence and closing costs, estimated near-term capital expenditures and leasing costs necessary to achieve stabilization.

Terreno Realty Corporation acquires, owns and operates industrial real estate in six major coastal U.S. markets: New York City/Northern New Jersey, Los Angeles, Miami, San Francisco Bay Area, Seattle and Washington, D.C.

Additional information about Terreno Realty Corporation is available on the company’s web site at www.terreno.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the federal securities laws. We caution investors that forward-looking statements are based on management’s beliefs and on assumptions made by, and information currently available to, management. When used, the words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “project,” “result,” “should,” “will,” “seek,” “target,” “see,” “likely,” “position,” “opportunity,” “outlook,” “potential,” “enthusiastic,” “future” and similar expressions which do not relate solely to historical matters are intended to identify forward-looking statements. These statements are subject to risks, uncertainties, and assumptions and are not guarantees of future performance, which may be affected by known and unknown risks, trends, uncertainties, and factors that are beyond our control, including risks related to our ability to meet our estimated forecasts related to stabilized cap rates, and those risk factors contained in our Annual Report on Form 10-K for the year ended December 31, 2024 and our other public filings. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated, or projected. We expressly disclaim any responsibility to update our forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. Accordingly, investors should use caution in relying on past forward-looking statements, which are based on results and trends at the time they are made, to anticipate future results or trends.

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Jaime Cannon

415-655-4580

Source: Terreno Realty Corporation