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  FedEx


Average Property & Lease

Average Sale Price$5M - $25M
CAP Rate (12mo avg with 10+ lease term)5.70%
NOI$500k - $1.5M
$/Square Foot$100 - $190
Building Size20,000 - 80,000 sf
Lot Size2 - 10 acres
Lease Term5 to 10 years
Escalations1 to 25 year options
CREDIT RATING
BBB
S&P
Baa2
Moody's
view credit rating chart
View Net Lease Property Listings at CALKAIN.COM Last Updated: September 26, 2016
Net Lease Advisor Overview

Fedex can write the textbook on global logistics – pioneering the just-in-time supply chain. Its unparalleled tracking systems allow customers around the world to see every detail of a package's movement from the moment the label is prepared until it is delivered to its final destination – anywhere in the world. It's $38 billion in annual revenues generated by over 290,000 employees.

With the help of its innovative information technology and its continued network expansion and accelerated transit times, they have opened new hubs, relocated more than 500 local facilities and are now delivering 50% of their packages in two days or less and 80% in three days or less. Their average daily package volume is now 3.5 million in FY10.

Investing in a Fedex distribution and staging facility means an investment in a Credit Tenant Lease, investment grade quality, which is the core to the Fedex ground business. Leases are typically long term and the locations are strategically located near important air and ground hubs.
 

Pros

Cons

  • Strong Credit Tenant
  • Strong Real Estate fundamentals in hub selection
  • Continued focus on network expansion and accelerated transit times
  • Proven business model and management team
  • Most locations have Landlord responsibilities, such as roof and structure limits
  • Impact of higher fuel costs on cash flow and margins
  • Real estate is designed for their specific use, which could impact the releasing to other tenants
Tenant Description

FedEx is the world's largest express transportation company providing a broad portfolio of transportation, e-commerce and business services through companies competing collectively, operating independently and managed collaboratively under the FedEx brand.

Consistently ranked among the world's most admired and trusted employers, FedEx has increased its outlook for 2011 despite increased fuel costs citing continued growth in the global economy and increased demand for services.

This increased demand places even more emphasis on its efficient distribution and staging facilities and its state-of-the-art information technology.


FEDEX TREND
CAP Rate

2013 avg: 7.09%

2014 avg: 7.03%

RECENT SALES

Los Angeles, CA

$5,095,000 | 7.21%

Temecula, CA

$2,600,000 | 6.5%

MORE INFO
www.fedex.com
Google Finance: FDX
Google News: FDX