EQT Real Estate doubles down on logistics with I-78 Commerce Center acquisition in Pennsylvania

EQT Real Estate, through its Industrial Core-Plus Fund IV, has acquired the newly built I-78 Commerce Center in Berks County, Pennsylvania, marking a strategic bet on high-spec logistics infrastructure in one of the most competitive industrial corridors in the United States. The 809,000-square-foot facility, completed in 2024, is located along the critical I-78/I-81 distribution axis and is designed for maximum throughput, tenant flexibility, and national reach.

This single-asset acquisition reinforces EQT Real Estate’s growing conviction that modern distribution centers—especially those with cross-dock designs and access to critical freight corridors—are now central to the evolving backbone of American logistics. The fund’s posture suggests it is not just chasing yield, but positioning itself as a long-term stakeholder in the recalibration of U.S. supply chains toward inland, infrastructure-rich nodes.

How does the I-78 Commerce Center exemplify the next phase of logistics infrastructure?

At a technical level, the I-78 Commerce Center is engineered for throughput and adaptability. It offers 40-foot clear heights, 590-foot building depth, and a 185-foot truck court—features that cater to high-volume tenants managing fast-moving consumer goods, retail replenishment, or e-commerce fulfillment. Its 123 dock-high doors and cross-dock layout enable simultaneous inbound and outbound flows, ideal for reducing dwell time and increasing shipping velocity.

With 156 trailer parking spots and four drive-in doors, the site’s capacity is configured for heavy tractor-trailer activity, supporting 24/7 logistics operations. Minimal office build-out suggests the property was built primarily as a throughput engine, not a hybrid asset with significant non-distribution use.

Crucially, its location allows reach to nearly 50 percent of the U.S. population within a single day’s drive, strengthening its value proposition to national tenants seeking to optimize inventory deployment and delivery timelines without relying on coastal hubs that are increasingly congested or expensive.

Why is the Pennsylvania I-78/I-81 corridor becoming a logistics investment hotspot?

The Pennsylvania I-78/I-81 corridor—spanning areas like Lehigh Valley, Berks County, and parts of Central Pennsylvania—has emerged as one of the most sought-after industrial real estate zones in the country. This rise is underpinned by its central location between major Northeast and Mid-Atlantic metros (New York, Philadelphia, Washington D.C., Baltimore), favorable trucking regulations, and extensive rail and intermodal connectivity.

Yet the corridor is also suffering from a chronic shortage of large-format logistics properties due to prolonged entitlement timelines and zoning hurdles. This structural supply constraint has driven up demand for newer facilities that can accommodate evolving tenant needs—especially cross-dock configurations and ESG-compliant buildings.

EQT Real Estate’s acquisition reflects its strategic awareness of this imbalance. With tenant demand remaining resilient, especially from third-party logistics providers, retailers, and consumer-packaged goods companies, well-located high-clearance facilities are becoming less a luxury and more a competitive necessity.

What does EQT Real Estate’s investment strategy suggest about where institutional capital is moving?

EQT Real Estate’s Chief Investment Officer, Matthew Brodnik, indicated that the firm remains focused on mission-critical infrastructure that supports modern supply chain requirements. That includes assets that offer not just locational advantage, but design specifications aligned with the needs of automation, high-speed sorting, and AI-driven logistics platforms.

The reference to “tenant utility” and “scale” underscores a broader trend: institutional investors are seeking logistics assets that not only offer stable cash flows, but also remain relevant under a wide range of tenant use cases, including robotics, cold storage retrofitting, or last-touch delivery optimization.

Core-plus industrial strategies, like EQT’s fund, sit between stabilized core holdings and value-add projects. They aim to deliver above-average returns without taking full development risk. Acquiring a newly completed facility like I-78 Commerce Center allows EQT to achieve both stability and upside, especially if lease-up is ahead of schedule or tenant quality exceeds underwriting.

How could EQT Real Estate’s logistics portfolio evolve in the current market environment?

With U.S. industrial vacancy rates creeping up in some secondary markets but remaining tight in key corridors, fund managers like EQT Real Estate are becoming more selective. The focus is shifting from broad-based geographic diversification to a more surgical approach, emphasizing nodes where freight, energy, and labor availability converge.

Facilities along power-secure corridors with intermodal access, skilled warehouse labor pools, and zoning protections are becoming increasingly scarce. EQT’s playbook appears designed to build scale in such pockets before pricing reflects this scarcity more fully.

Moreover, EQT Real Estate’s continued investments in logistics may also serve as a hedge against volatility in office and retail real estate portfolios. With e-commerce stabilization, retail store reconfiguration, and U.S. reshoring trends, demand for central distribution infrastructure is not expected to materially weaken—even amid macroeconomic slowdowns.

What are the competitive and tenant-side implications of this acquisition?

For tenants, the emergence of more institutional-grade, modern facilities in Central Pennsylvania offers alternatives to overbuilt or obsolete properties in legacy distribution markets like Northern New Jersey or Eastern Pennsylvania suburbs. Larger tenants may use properties like the I-78 Commerce Center to consolidate operations, optimize middle-mile logistics, or integrate with port infrastructure via rail or truck.

From a competitive standpoint, the acquisition places EQT Real Estate alongside logistics-focused players like Prologis, LXP Industrial Trust, and Realterm in targeting critical inland corridors with scalable properties. However, unlike some peers that pursue development-heavy strategies, EQT’s core-plus model allows it to capitalize on ready-built opportunities with lower construction risk.

CBRE National Partners, which represented the seller, has remained active in the region’s industrial capital markets. The presence of such large brokerage intermediaries further validates the corridor’s institutional depth and rising asset liquidity.

What signals does this transaction send to the broader industrial and infrastructure investment market?

This transaction confirms that institutional appetite for modern logistics infrastructure remains strong—even in an environment of interest rate uncertainty and inflationary construction inputs. EQT Real Estate’s move aligns with broader capital rotation themes across real estate—away from office, toward industrial and infrastructure.

It also signals a growing recognition that inland logistics nodes, especially those with multi-modal access, represent the next phase of distribution realignment. As the U.S. supply chain continues to regionalize—balancing coastal imports, domestic production, and cross-border trade—well-located, power-secure, automation-ready facilities will become the new currency of distribution leverage.

If EQT Real Estate continues this strategy, it may not only outperform on stabilized yields but also find itself holding premium-positioned assets as logistics becomes increasingly strategic in capital markets and geopolitical planning.

Key takeaways: What EQT Real Estate’s I-78 acquisition means for logistics and investors

• EQT Real Estate has acquired the 809,000-square-foot I-78 Commerce Center in Berks County, Pennsylvania, signaling increased focus on cross-dock logistics.
• The facility offers 40-foot clear heights and 123 dock-high doors, optimized for national throughput and same-day reach to 50 percent of the U.S. population.
• Located along the high-demand I-78/I-81 corridor, the asset provides access to critical regional airports, intermodal rail, and major Northeast/Mid-Atlantic metros.
• The acquisition aligns with EQT’s strategy to deploy capital into mission-critical, tenant-flexible industrial infrastructure amid office market uncertainty.
• Structural supply constraints in Pennsylvania logistics markets have increased investor competition for large-format, high-spec distribution centers.
• EQT’s core-plus strategy balances yield with growth by targeting completed, scalable assets in supply-constrained nodes without assuming development risk.
• The transaction places EQT among other institutional logistics players focusing on inland corridors with strong freight, power, and labor access.
• As reshoring and regionalization intensify, such acquisitions may become even more critical for supply chain resilience and investor outperformance.