FedEx Tenant Overview
Updated: November 15, 2023
- 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
Q3 2021 Earnings Summary
- FedEx Ground reported record earnings for the quarter and revenue growth of 27% - to $22.6 billion
- FedEx Freight reported record earnings and operating margin of 16.1% for the quarter
- Average daily shipments grew 30% and revenue per shipment increased 6%
FedEx is the world leader in package shipment.
Investing in a FedEx distribution and staging facility means an investment in a property that is the core of the FedEx ground business, and leased by a strong investment grade tenant. Leases usuallu are long-term with 5-15 years. FedEx warehouses are most often located near important air and ground hubs.
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.
With the help of its innovative information technology and its continued network expansion and accelerated transit times, they have opened new hubs, and relocated more than 500 local facilities. FedEx is now delivering 50% of their packages in two days or less and 80% of their packages in three days or less. Their average daily package volume is around 12 million.
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.
This increased e-commerce demand places even more emphasis on its efficient distribution and staging facilities and its state-of-the-art information technology.
Average Cap Rate
Trailing 12-month average
Average Property & Lease
|Average Sale Price
||$130 - $360
||1,800 - 300,000
||.5 - 54 Acres
||5 - 15 Years
||5 - 10% per Option
Average Cap Rate Trend
Rates reflect year-over-year comparison
Recent Sales Comps
|Green Bay, WI
|East Lansing, MI
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