Nikita Bely

Nikita Bely from J.P. Morgan questioned the drivers behind strong leasing activity, especially from manufacturing and 3PL tenants, and asked for insights on market-level rent trends and current rent bumps on new leases.

Answer

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%.

Nikita Bely requested specific 2025 guidance for multi-tenant portfolio occupancy absorption and a year-end multi-tenant occupancy target.

Answer

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.

Nikita Bely of JPMorgan Chase & Co. asked for the company's expectation for 2025 market rent growth across the portfolio, distinct from the re-leasing spreads on expiring leases.

Answer

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.