Logistics real estate provider Link Logistics said Monday demand for final-mile space remains strong.
In a fourth-quarter 2022 update, the owner of the largest U.S.-only portfolio of logistics properties said it executed leases representing 18.5 million square feet of space during the period (78.5 million square feet during full-year 2022). Link’s portfolio was 97.3% leased on a same-store comparison, which was 40 basis points lower year over year (y/y).
“Demand for high-quality, well-located last-mile logistics real estate remains strong, with robust leasing activity and vacancies near historic lows,” said Nicholas Pell, Link’s president and chief investment officer. “I am pleased with our significant success in this environment as we expand and develop the portfolio by leveraging our proprietary data and insights.”
Link reached a new milestone in the fourth quarter for blended cash leasing spreads — a comparison of new rents to expiring rents — at 63.5%. The threshold was 30 percentage points higher y/y and the third straight quarter a new high was established.
Total transaction activity for 2022 totaled $15.5 billion, including the addition of $11.2 billion in new assets (48.3 million square feet). Link currently has 16 million square feet under construction at an expected cost of $2.4 billion. It ended the year with an interest in 545 million square feet of space, a modest decline from 550 million at the end of the third quarter.
“Despite the evolving macroenvironment, I am confident that the Link portfolio is well positioned for growth given the solid logistics industry fundamentals and our infill-focused portfolio,” said Luke Petherbridge, Link’s CEO.
Link Logistics was established by Blackstone in 2019.
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