During 2025, Gladstone Commercial significantly increased its industrial exposure by completing the acquisition of 12 single-tenant industrial properties totaling 1.4 million square feet. These assets were purchased for a combined $210 million, representing a weighted average cap rate of 7.2%. The new properties, located in key logistics hubs such as Atlanta, Memphis and Columbus, Ohio, are triple-net leased to investment-grade tenants on initial lease terms averaging 12 years, with built-in rent escalation of 2.5% per annum.

In a continued effort to streamline its portfolio, Gladstone Commercial sold 9 non-core office buildings in secondary markets for total gross proceeds of $138 million. The dispositions generated $126 million in net cash after transaction costs, which the company used to repay outstanding debt on its revolving credit facility. Following these transactions, the company’s undrawn revolving credit capacity stands at $45 million, providing ample liquidity to pursue further industrial investments.

As of December 31, 2025, Gladstone Commercial reported a portfolio occupancy rate of 98.6%, up from 97.2% a year earlier. The net lease portfolio consists of 298 properties across 32 states, with industrial assets now representing 47% of total square footage. Net debt to adjusted EBITDA stood at 5.1x, within the company’s target leverage range, and the weighted average debt maturity extends to 5.8 years, reducing near-term refinancing risk and preserving financial flexibility.