Logistics real estate operator Link Logistics grew its portfolio again in the fourth quarter, saying demand for last-mile locations remains steady.
The company inked 805 leases (new and renewing), which comprised 23.4 million square feet of space in the quarter compared to 18.5 million in the year-ago quarter. It signed leases representing 86 million square feet in total during 2023 compared to 78.5 million in 2022.
Its real estate portfolio was 96.2% leased on a same-store basis in the fourth quarter, which was 20 basis points lower than in the third quarter. Blended cash leasing spreads — a comparison of new rents to expiring rents — were 55.6%, which was 140 bps lower than the third quarter and 790 bps lower year over year.
“Our infill-focused portfolio strategy continued to yield strong results, powered by sustained e-commerce strength and onshoring tailwinds,” said CEO Luke Petherbridge. “We are committed to investing in exceptional logistics real estate and remain focused on maximizing value for our customers.”
Link Logistics holds the largest U.S.-only logistics real estate portfolio with 539 million square feet of space, including developments. It currently has 14.6 million square feet under construction. During the fourth quarter, it disposed of 3.1 million square feet of space, which generated $558.6 million in gross proceeds.
The company added $2 billion in assets — 59 logistics facilities in major U.S. distribution markets totaling 12.5 million square feet — during 2023.
“As we mark five years since our founding, I could not be prouder of our talented team and the scalable platform we have built, which position us well for future growth,” Petherbridge said.
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