Logistics real estate provider Link Logistics said demand for space remains stable in a third-quarter update released on Wednesday. Backed by Blackstone, Link owns and operates the largest portfolio of logistics properties found only in the United States.
“We are seeing healthy, broad-based demand for space, high occupancy activity and limited vacancy across our portfolio despite macroeconomic uncertainty,” said Link CEO Luke Petherbridge. “Link remains focused on partnering with our customers to solve their supply chain challenges while making a positive impact on the communities in which we live, operate and invest.”
According to the report, the company now has a stake in 550 million square feet of logistics space. In the third quarter, 97.4% of the same store portfolio was occupied, up 40 basis points year-over-year.
Leasing during the period included 542 new and renewal contracts, representing 18.9 million square feet. Blended cash lease spreads of 51.8% were a record. The key figure is a comparison of new rents to expiring rents.
The company currently has 17.1 million square feet under construction at an estimated cost of $2.5 billion.
“During the quarter, we added prime infill properties to our portfolio with a focus on markets with high barriers to entry in the United States,” said Nicholas Pell, Link’s President and Chief Investment Officer. “The real-time data and insights generated by our 500+ million square foot platform continue to convince us of the bright prospects for the logistics sector.
“Given our unique size and access to capital, we remain heavily focused on making new investments, even amid broader capital market volatility.”
The company completed its acquisition of PS Business Parks in July, adding 27 million square feet to the portfolio valued at $7.6 billion.
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