LXP Industrial Trust Leases 1.2 Million Square Foot Development Project in Phoenix
LXP (NYSE:LXP) pre-leased a 1.2 million sq ft speculative warehouse development in Phoenix to a U.S. subsidiary of a global logistics company, with lease commencement on Dec 1, 2026 and a five-year term.
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Rhea-AI Summary
LXP (NYSE:LXP) pre-leased a 1.2 million sq ft speculative warehouse development in Phoenix to a U.S. subsidiary of a global logistics company, with lease commencement on Dec 1, 2026 and a five-year term.
Initial annual cash base rent is $9.8 million with 3.5% annual escalations. Estimated total project cost is $122 million, producing an estimated development cash yield of ~8.0%. LXP reported a record 4.4 million sq ft of new and extended leases year-to-date.
Positive
- Pre-lease of 1.2 million sq ft
- Initial annual rent of $9.8 million
- Estimated development cash yield of ~8.0%
- Record leasing volume of 4.4 million sq ft YTD
Negative
- Estimated project cost of $122 million
- Lease term limited to five years
Details
News Market Reaction – LXP
On May 1, the first trading day after this news, LXP closed 1.81% above the previous close.
Data tracked by StockTitan Argus for the May 1 session.
Key Figures
- Phoenix project size
- 1.2 million square feet
- Speculative development project in Phoenix
- Lease start date
- December 1, 2026
- Commencement of pre-leased Phoenix development
- Lease term
- 5 years
- Initial lease term for Phoenix project
- Initial annual cash base rent
- $9.8 million
- Year 1 cash rent for Phoenix lease
- Annual rental escalations
- 3.5%
- Year-over-year rent increases in lease
- Estimated project cost
- approximately $122 million
- Total cost of Phoenix speculative development
- Development cash yield
- approximately 8.0%
- Estimated yield on Phoenix development
- Record leasing volume
- 4.4 million square feet
- New and extended leases year-to-date
Historical Context
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Announcement of Q1 2026 results release and conference call timing.
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Quarterly common and preferred dividend declarations for early 2026.
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Q4 2025 results with solid FFO, high leasing, and 2026 guidance update.
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Final 2025 dividend income allocation details for common and preferred shares.
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Closing of new unsecured revolver and term loan with lower spreads.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
AI-generated analysis. How Rhea-AI works. Not financial advice.
WEST PALM BEACH, Fla., April 30, 2026 (GLOBE NEWSWIRE) -- LXP Industrial Trust (“LXP”) (NYSE:LXP), a real estate investment trust focused on Class A warehouse and distribution real estate investments, today announced that it has pre-leased its 1.2 million square foot speculative development project in Phoenix to a U.S. subsidiary of a global logistics company. The lease is expected to commence on December 1, 2026, for a five-year lease term at an initial annual cash base rent of
T. Wilson Eglin, Chairman and Chief Executive Officer of LXP, commented, “We’re excited to have pre-leased our 1.2 million square foot development project in the West Valley submarket of Phoenix to a full building user. We closely monitored market fundamentals before commencing this project and observed that the million square foot supply was being steadily absorbed from a diverse range of users over the last 18 months. Our decision to start a new speculative project positioned us to secure this lease during the early part of the construction phase. With this lease, LXP has achieved record leasing volume at this stage of the year, executing 4.4 million square feet of new and extended leases.”
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 lower Midwest. LXP seeks to expand its warehouse and distribution portfolio through acquisitions, build-to-suit transactions, sale-leaseback transactions, development projects and other transactions. For more information, including LXP's Quarterly Supplemental Information package, or to follow LXP on social media, visit www.lxp.com.
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
This release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts included in this press release are forward-looking statements, including, but not limited to, statements regarding the use of proceeds from the sale. Such forward-looking statements 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 SEC. 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.
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