JPMREIT’s Office Bet Lags Industrial as Portfolio Tops $1.7 Billion in Gross Assets

J.P. Morgan Real Estate Income Trust’s first office investment was 62% occupied at midyear, the weakest occupancy in the nontraded REIT’s portfolio, even as its adviser, J.P. Morgan Asset Management, has identified high-quality office as one of the strongest commercial real estate themes of the year.

JPMREIT held 68 real estate properties as of June 30, with a combined gross asset value of $1.75 billion, up from $1.28 billion at the end of 2025. AltsWire previously reported that JPMREIT’s second-quarter acquisitions included a seven-building office portfolio in Wakefield, Mass., purchased for $61 million, alongside industrial and retail additions.

That Wakefield portfolio, JPMREIT’s first foray into the office sector, was 62% occupied as of June 30 – well below the REIT’s industrial properties, which were 99% occupied across 40 assets, and its retail holdings, which stood at 95% occupancy across three properties. Multifamily occupancy came in at 90% across roughly 3,100 units, and the REIT’s single-family rental property was 86% leased.

Multifamily remained JPMREIT’s largest revenue contributor among its real estate segments, generating $32.2 million of the REIT’s $59 million in six-month rental revenue, or 55%. Industrial followed at $18.3 million, or 31%, while office contributed less than 1%.

JPMREIT reported net income attributable to stockholders of $1.08 million for the second quarter, but a net loss of $1.69 million for the six months ended June 30, compared with net income of $1.71 million over the same period in 2025. Total revenue for the quarter was $29.3 million, more than double the $13.2 million reported in the second quarter of 2025.

The occupancy gap comes as J.P. Morgan Asset Management said in its 2026 mid-year commercial real estate outlook that office fundamentals are improving broadly, with vacancy falling for four consecutive quarters and performance strongest among new and trophy-quality buildings. The firm characterized the current entry point for commercial real estate as among the most attractive it has observed in years.

JPMREIT, advised by J.P. Morgan Asset Management, launched in 2022 as the firm’s entry into the nontraded REIT sector. AltsWire reported last month that the REIT’s second public offering, which commenced Feb. 4, targets up to $4.8 billion.

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