E-commerce, onshoring drive Q1 demand for Link Logistics

Final-mile terminal operator’s portfolio is 94.6% leased

Link Logistics disposed 10 facilities in the first quarter, generating $1.5 billion in gross proceeds. (Photo: Link Logistics)

Logistics real estate operator Link Logistics signed 696 new and renewing leases in the first quarter, representing 17.8 million square feet of space. In the fourth quarter, it inked deals covering 23.4 million square feet.

Link Logistics’ portfolio was 94.6% leased in the first quarter, which was 160 basis points lower than in the fourth. Blended cash leasing spreads — a comparison of new rents to expiring rents — were 44.4%, which was 1,120 bps lower sequentially.

“We entered 2024 with persistent demand for our well-located, last-mile properties,” said CEO Luke Petherbridge. “E-commerce continued to be a significant growth driver, along with the onshoring of manufacturing and the transition to clean energy.”

New York-based Link Logistics holds the largest U.S.-only logistics real estate portfolio at 533 million square feet, including developments. It has 13.1 million square feet under construction. During the first quarter, it disposed of 10 facilities with 7.1 million square feet, generating $1.5 billion in gross proceeds.

“In the first quarter, our scale, unique data insights and talented team helped us to take advantage of attractive, value-creating opportunities, including our market-leading $6.5 billion of refinancings,” said Nicholas Pell, president and chief investment officer. “We are focused on tailoring our portfolio to prioritize high-barrier markets with favorable supply and demand fundamentals.”

The company added $2 billion in assets last year, which included 59 logistics facilities totaling 12.5 million square feet.

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Todd Maiden

Based in Richmond, VA, Todd is the finance editor at FreightWaves. Prior to joining FreightWaves, he covered the TLs, LTLs, railroads and brokers for RBC Capital Markets and BB&T Capital Markets. Todd began his career in banking and finance before moving over to transportation equity research where he provided stock recommendations for publicly traded transportation companies.