Nikita Bely • J.P. Morgan

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James Connolly, EVP & Asset Management, explained that manufacturing firms are seeking long-term space and 3PL activity is increasing, particularly in markets like Indianapolis, where Plymouth's properties offer a better cost structure. He noted that market rents for smaller footprints are growing, while big-box rents have flattened due to new supply. He confirmed that rent bumps on new and renewal leases are averaging around 3.5%.

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CFO Austen Helfrich stated that for 2025, the company will not provide specific forward-looking guidance for the multi-tenant portfolio. He explained this is to simplify reporting and focus guidance on the same-store portfolio and the consolidated company for better comparability, though historical multi-tenant data remains in the supplemental.

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Executive Marshall Loeb provided a bifurcated outlook. For markets east of California, he anticipates rent growth slightly above inflation in the first half of the year, with potential to accelerate to mid-single digits in the second half due to low supply. Conversely, for Los Angeles, he noted that rents are still finding their footing after a period of negative absorption and could continue to move in a negative direction.

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