Project UpdateApr 30, 2026, 04:16 PM
LXP Pre-leases 1.2M Sq Ft Phoenix Project; 8.0% Yield
AI Summary
LXP Industrial Trust announced 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 five-year lease, commencing December 1, 2026, has an initial annual cash base rent of $9.8 million with 3.5% annual escalations. The project, with an estimated cost of $122 million, is expected to generate an 8.0% development cash yield. This pre-lease contributes to LXP achieving a record 4.4 million square feet in new and extended leases year-to-date.
Key Highlights
- LXP pre-leased its 1.2 million sq ft speculative development project in Phoenix.
- The five-year lease term is expected to commence on December 1, 2026.
- Initial annual cash base rent is $9.8 million, with 3.5% annual rental escalations.
- The estimated total project cost is approximately $122 million.
- The lease signing results in an estimated development cash yield of approximately 8.0%.
- LXP achieved record leasing volume of 4.4 million sq ft of new and extended leases year-to-date.