Brookfield Inks $1.2B Deal to Acquire Peakstone Realty Trust

February 3, 2026

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The all-cash transaction will expand the new owner’s industrial outdoor storage portfolio.

Aerial view of an IOS site at 4800 Straus Drive in Sacramento, Calif., recently acquired by Alterra IOS. *Image courtesy of Alterra IOS*

Brookfield Asset Management has inked a deal to acquire Peakstone Realty Trust, a Southern California-based REIT, for $1.2 billion in cash. The acquisition is expected to close by the end of the second quarter.

A Brookfield private real estate fund is acquiring all of the outstanding shares of Peakstone for $21 per share, which represents a premium of 34 percent to the REIT’s share price on Jan. 30, the last full trading day prior to the announcement.

The price also represents a 46 percent premium to the average price over the last 30 days and a 51 percent premium over the average of the last 90 days, according to Peakstone.

The acquisition agreement allows Peakstone to shop for a better price for itself over the next 30 days. Assuming that doesn’t happen, Peakstone’s shares will no longer trade on the New York Stock Exchange after the acquisition by Brookfield is finalized.

Peakstone’s transformation

Peakstone has transformed itself recently. Late last year, the company completed the disposition of its office portfolio, thus becoming an industrial specialist.

In November, Montana Avenue Capital Partners acquired a two-building, 431,233-square-foot office and R&D campus in Burlington, Mass., from Peakstone for $84.5 million. That same month, Signature Acquisitions bought a 203,506-square-foot office building in Parsippany, N.J., from Peakstone.

The REIT is now focused on a subspecialty within the industrial sector, with 60 of its 76 properties classified as industrial outdoor storage. IOS assets are open-air facilities used for storing equipment, vehicles or other materials that don’t require enclosed warehouse space.

Peakstone entered the IOS sector in 2024 with the purchase of a 51-asset portfolio in 14 states, valued at $490 million, from Alterra IOS. Peakstone isn’t alone in the game: also last year, Barings and Brennan Investment Group formed a joint venture with an IOS acquisition target of $150 million or even higher, and Realterm purchased a 13-property IOS truck terminal portfolio from Brookfield for $277 million.

Industrial outdoor storage comes of age

Industrial outdoor storage is an emerging segment of the industrial market, attracting attention among occupiers for its flexibility and low cost, and thus driving institutional capital’s interest, according to Yardi Matrix. The properties are flexible enough to encompass a wide array of uses, including overflow container storage, vehicle parking, infill locations supporting last-mile deliveries, and bulk material yards.

Demand for IOS continues to grow among a variety of tenants, but supply is limited due to zoning constraints and because, eventually, IOS properties are often targets for repurposing into higher-value uses. The supply-demand imbalance has led to escalating rents, with Newmark reporting rent gains of 123 percent since 2020. The inland logistics hubs in Memphis, Tenn., Atlanta and Phoenix enjoyed the largest increases.

The majority of IOS properties are privately held, and pricing isn’t yet standardized, Yardi Matrix reported. Many lenders aren’t familiar with the segment. Even so, a 2024 investment survey by PwC estimated IOS to be a $200 billion market, with $1.7 billion in institutional capital raised in the year preceding the survey.

Yardi Matrix anticipates the sector will transition from a niche product type to an institutionalized asset class, even though supply will remain constrained, as IOS development often faces pushback from cities and residents. Over the long term, however, the storage of emerging technologies like aerial drone delivery and autonomous trucks will drive demand for IOS.