LXP Industrial Trust Leases 1.1 Million Square Foot Industrial Facility in Greenville/Spartanburg

Rhea-AI Summary

LXP Industrial Trust (NYSE: LXP) has secured a lease for its 1.1 million square foot industrial facility in Greenville/Spartanburg, South Carolina. The lease agreement is with a U.S. subsidiary of a global logistics company, commencing June 1, 2025, for a two-year term with two five-year renewal options. The initial rent is set at $5.50 per square foot with 3.25% annual rental escalations.

The lease is expected to generate approximately $3.7 million in Base Rent and operating cost reimbursement in 2025, resulting in an estimated stabilized cash yield of 8.0% for the development project. LXP has developed 15 facilities totaling 9.1 million square feet, with 74% already leased at an average estimated stabilized cash yield of 7.1%. The company has 2.3 million square feet of remaining spec development space available for leasing.

Positive

• New lease agreement secures 1.1 million square feet with initial rent of $5.50/sq ft and 3.25% annual escalations
• Expected to generate $3.7 million in Base Rent and operating cost reimbursement in 2025
• Attractive 8.0% estimated stabilized cash yield on the development project
• Strong portfolio performance with 74% of developed facilities already leased at 7.1% average yield

Negative

• Short initial lease term of only two years creates potential near-term vacancy risk
• 2.3 million square feet of spec development space remains unleased

WEST PALM BEACH, Fla., May 21, 2025 (GLOBE NEWSWIRE) -- LXP Industrial Trust (“LXP”) (NYSE: LXP), a real estate investment trust (REIT) focused on Class A warehouse and distribution investments, today announced that it executed a lease for its approximately 1.1 million square foot industrial facility in the Greenville/Spartanburg, South Carolina market.

The lease to a U.S. subsidiary of a global logistics company commences on June 1, 2025, for a two-year term, with two five-year renewal options, and an initial rent of $5.50 per square foot with 3.25% annual rental escalations. The signing of the lease results in an estimated stabilized cash yield of approximately 8.0% for the development project.

T. Wilson Eglin, Chairman and Chief Executive Officer of LXP, commented, “Leasing our Greenville/Spartanburg industrial facility to a full building user is an important component of our earnings growth. We expect this lease to generate approximately $3.7 million of Base Rent and operating cost reimbursement in 2025. To date, we've developed 15 facilities totaling 9.1 million square feet, 74% of which has been leased at an average estimated stabilized cash yield of 7.1%. Leasing our remaining 2.3 million square feet of spec development, together with the embedded mark-to-market opportunities in our portfolio and contractual rent growth, are compelling drivers of earnings growth.”

ABOUT LXP INDUSTRIAL TRUST

LXP Industrial Trust (NYSE: LXP) is a publicly traded real estate investment trust (REIT) focused on Class A warehouse and distribution investments in 12 target markets across the Sunbelt and Midwest. LXP seeks to expand its portfolio through acquisitions, development projects, and build-to-suit and sale/leaseback transactions. For more information or to follow LXP on social media, visit www.lxp.com.

This release contains certain forward-looking statements which involve known and unknown risks, uncertainties and other factors not under LXP’s control which may cause actual results, performance or achievements of LXP to be materially different from the results, performance, or other expectations implied by these forward-looking statements. These factors include, but are not limited to, those factors and risks detailed in LXP's periodic filings with the Securities and Exchange Commission. Except as required by law, LXP undertakes no obligation to publicly release the results of any revisions to those forward-looking statements which may be made to reflect events or circumstances after the occurrence of unanticipated events.

Base Rent is calculated by making adjustments to GAAP rental revenue to exclude billed tenant reimbursements and lease termination income and to include ancillary income. Base Rent excludes reserves/write-offs of deferred rent receivable, as applicable. LXP believes Base Rent provides a meaningful measure due to the net lease structure of leases in its portfolio.

Stabilized yields assume 100% occupancy and the payment of estimated costs to achieve 100% occupancy, excluding developer incentive fees or partner promotes, if any.

Contact:
Investor or Media Inquiries for LXP Industrial Trust:
Heather Gentry, Executive Vice President of Investor Relations
LXP Industrial Trust
Phone: (212) 692-7200 E-mail: hgentry@lxp.com

FAQ

What is the size and location of LXP Industrial Trust's newly leased facility?

LXP Industrial Trust's newly leased facility is approximately 1.1 million square feet and is located in the Greenville/Spartanburg, South Carolina market.

What are the key terms of LXP's new lease agreement in Greenville/Spartanburg?

The lease begins June 1, 2025, with a two-year term, two five-year renewal options, initial rent of $5.50 per square foot, and 3.25% annual rental escalations.

How much revenue will LXP's new Greenville/Spartanburg lease generate in 2025?

The lease is expected to generate approximately $3.7 million in Base Rent and operating cost reimbursement in 2025.

What is the stabilized cash yield for LXP's Greenville/Spartanburg development project?

The development project has an estimated stabilized cash yield of approximately 8.0%.

How much of LXP Industrial Trust's developed facilities are currently leased?

LXP has leased 74% of its 9.1 million square feet of developed facilities at an average estimated stabilized cash yield of 7.1%.