FedEx TENANT OVERVIEW


Net Lease Advisor Tenant Fedex

Pros

  • 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

Cons

  • 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 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 typically have a long term. FedEx 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. In 2016, FedEx generated $50.37 billion in revenue.
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 greater than 13 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 demand places even more emphasis on its efficient distribution and staging facilities and its state-of-the-art information technology.

Average Cap Rate
6.31%
12 mo avg with 10+ yr lease term
Average Property & Lease
Average Sale Price $3M - $35M
NOI $189,000 - $2.2M
$/Square Foot $100 - $300
Building SF 10,000 - 300,000
Lot Size 1.0 - 15.0 Acres
Lease Term 5 - 10 Years
Escalations 5 - 10% per Option
Stock Symbol FDX
Credit Rating
S&P BBB
Moody's Baa2
Average Cap Rate Trend
6.72%
2016
6.50%
2017
Rates reflect last 12 mos, short and long-term
Recent Sales Comps
Oak Park, MI 7.03%
Buena Vista,CO 6.00%
Jackson, MS 6.48%