Some industrial properties with maturing mortgages could be in trouble as FedEx moves forward with plans to shrink its footprint in the U.S. and Canada.
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Nearly $3B of CMBS loans are tied to 174 U.S. industrial properties where FedEx is the anchor tenant, according to a Trepp analysis. There is $837M of debt, or 29% of that balance, backed by properties where FedEx’s leases are set to expire before the loans mature.
The report highlights how much of the securitized industrial debt market is tied to two companies: FedEx and Amazon.
Combined, they anchor properties tied to $6.6B of CMBS loans, nearly 10% of the $68.9B total outstanding CMBS debt backed by warehouses that are leased to identifiable tenants, according to Trepp. That is more exposure than the next 10 tenants combined.
And while the total investment dollars with exposure to Amazon are slightly larger, at $3.6B, roughly 9.2% of its leases are set to expire before the debts come due, according to Trepp’s analysis. The tech giant is also looking to expand its warehouse network, while Nashville-based FedEx is pursuing a real estate consolidation.
FedEx is partway through implementing its plan to reduce its footprint by roughly 30% before the end of next year. It is set to relinquish a total of 475 stations from its network. It had already closed around 200 of its hubs as of the company's February investor day.
The push could make it complicated for many landlords to pay off their loans.
At 84 FedEx-anchored properties, loans will come due soon after existing leases expire. It is unclear exactly which facilities FedEx plans to shutter as it consolidates, and it could renew some leases while shuttering facilities that have years remaining on their deals.
FedEx occupies nearly 12% of all of the properties rented to a single tenant with a lease expiring before its loan matures.
For example, a $45.1M loan secured by a 210K SF facility in Redmond, Washington, matures on Jan. 1, 2030. FedEx’s lease expires at the end of July 2028, allowing roughly 17 months for the landlord to potentially roll the space over, according to Trepp.
In other cases, landlords will have far less time if they need to get a new tenant in.
FedEx's lease at a 300K SF build-to-suit building in Groveport, Ohio, ends on Aug. 31, just six months before the landlord's $21.1M mortgage matures.
Upcoming vacancy might not be as worrisome as it would have been two years ago, with leasing activity through the first six months of this year outpacing the same period in 2025 by 20%, according to Cushman & Wakefield.
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