FedEx's Consolidation Plan Puts $3B Of CMBS Debt In Crosshairs

Some industrial properties with maturing mortgages could be in trouble as FedEx moves forward with plans to shrink its footprint in the U.S. and Canada. 

Nearly $3B of CMBS loans are tied to 174 U.S. industrial properties where FedEx is the anchor tenant, according to a Trepp analysis. There is $837M of debt, or 29% of that balance, backed by properties where FedEx’s leases are set to expire before the loans mature.

The report highlights how much of the securitized industrial debt market is tied to two companies: FedEx and Amazon.

Combined, they anchor properties tied to $6.6B of CMBS loans, nearly 10% of the $68.9B total outstanding CMBS debt backed by warehouses that are leased to identifiable tenants, according to Trepp. That is more exposure than the next 10 tenants combined...

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RSK: Sometimes that credit tenant isn't all it is made up to be....but that's one of the risks in CRE.