Broadstone Net Lease Reaches Key Milestone with Completion of First MRO Facility and Expands Build-to-Suit Development Pipeline
Broadstone Net Lease, Inc. (NYSE: BNL), a diversified real estate investment trust focused on long-term net leased properties, has announced a significant milestone in its ongoing development activities. The company confirmed that it has reached substantial completion on the first of two major Maintenance, Repair, and Overhaul (MRO) hangar facilities at Dayton International Airport. These facilities are designed to support Sierra Nevada Corporation (SNC) in its partnership with the U.S. Air Force, specifically in the replacement of the aging E4B “Nightwatch” fleet—often referred to as the National Airborne Operations Center or “Doomsday Aircraft.”
The first hangar, now nearing operational readiness, represents a critical piece of infrastructure for SNC’s work at nearby Wright-Patterson Air Force Base. This base is one of the most strategic and historically significant military installations in the United States, serving as the headquarters of the Air Force Materiel Command and supporting a wide range of aerospace, logistics, and defense operations.
Under the terms of the lease associated with the new hangar, rent officially commenced on November 1, 2025. The rent will gradually increase to its fully stabilized level as remaining finish work, final fit-outs, and operational commissioning are completed in the coming months. This phased commencement structure is consistent with BNL’s typical development and leasing strategies, which are designed to minimize downtime while aligning capital deployment with tenant ramp-up needs.
Meanwhile, construction progress on the second MRO hangar continues to advance on schedule. Broadstone expects the second facility to reach substantial completion in the first quarter of 2026. Once both hangars are operational, they will collectively serve a vital role in supporting ongoing aircraft modernization, fleet readiness, and national defense preparedness.
Expansion of Build-to-Suit Development Pipeline
In addition to progress at the Dayton International Airport project, Broadstone Net Lease announced new build-to-suit development activity that further expands its long-term committed pipeline. The company has secured land and commenced construction on two new projects for well-known national tenants: Hobby Lobby and Academy Sports + Outdoors.
Both developments were sourced through direct, off-market channels—a strategy that reflects Broadstone’s disciplined approach to relationship-based tenant development. This method helps the company avoid competitive auction environments, secure more economically favorable terms, and maintain tighter control of underwriting assumptions linked to rent durability and tenant creditworthiness.
The new facilities for Hobby Lobby and Academy Sports are expected to be delivered in the third and fourth quarters of 2026, respectively. These development projects strengthen Broadstone’s presence within the retail and logistics-connected property segments, adding long-term, net-lease stability to its growing portfolio. Additionally, these assets will be custom-built to meet the operational needs of each tenant, further improving tenant retention prospects and lease renewal likelihood.
Broadstone noted that these additions will meaningfully expand the company’s build-to-suit development pipeline, increasing capital deployment opportunities while maintaining alignment with its disciplined, credit-focused investment model.
Broadstone’s Portfolio and Investment Strategy
Broadstone Net Lease maintains a diversified portfolio of primarily single-tenant, long-term net leased commercial properties. The company focuses on industrial and logistics-related real estate, while also maintaining selective exposure within the retail and specialized operational segments. The net lease real estate model provides predictable and steady cash flows, as tenants generally bear responsibility for taxes, insurance, and property maintenance obligations.
As of September 30, 2025, Broadstone’s real estate portfolio included 759 individual net leased commercial properties. Of these, 752 properties were located across 44 U.S. states, while the remaining seven were located across four provinces in Canada. The portfolio spans tenants operating in industrial, retail, supply chain, and specialized facility types, ensuring that no single tenant industry dominates performance outcomes.
The company remains committed to a disciplined growth and acquisition philosophy, relying on strong credit assessment and conservative underwriting. This approach helps safeguard portfolio performance while allowing the company to strategically expand into high-demand and mission-critical real estate sectors.
Strategic Importance of Recent Developments
The completion and continued progress of the Dayton MRO facilities is particularly notable for Broadstone. These assets are mission-critical infrastructure supporting U.S. national defense programs and aerospace readiness. Facilities associated with defense and aerospace operations tend to carry long-term tenant commitments and stable rent streams due to the complexity and cost involved in relocating such operations. This aligns well with Broadstone’s investment priorities of durability, credit resilience, and operational importance.
Similarly, the new developments for Hobby Lobby and Academy Sports reflect Broadstone’s ongoing efforts to align its real estate with tenants that demonstrate strong market presence, consistent consumer demand, and the ability to operate efficiently in regional and national distribution networks.
With new development milestones achieved and fresh projects underway, Broadstone Net Lease continues to strengthen its portfolio and reinforce the reliability of its long-term cash flows. The company’s strategic focus on high-credit tenants, mission-critical properties, and direct-sourced development opportunities positions it for continued stability and performance in the evolving commercial real estate market.
