Plymouth Industrial REIT Inks Lease at Key St. Louis Building
Plymouth Industrial REIT (NYSE: PLYM) has secured a two-year lease agreement for its 769,500-square-foot Class A industrial building in St. Louis's Metro East submarket. The lease, which began January 15, 2025, is with a major international manufacturing, engineering, and logistics service provider. The agreement covers 600,000 square feet in the first year and 450,000 square feet in the second year.
The new lease rate is higher than recent market signings and compares favorably to the expiring rent on a net effective per square foot basis. Notably, the agreement was executed without free rent or tenant improvements, unlike the original lease which had specific tenant requirements affecting the rate.
Plymouth Industrial REIT (NYSE: PLYM) ha ottenuto un contratto di locazione di due anni per il suo edificio industriale di Classe A di 769.500 piedi quadrati nel mercato sublocale di Metro East a St. Louis. Il contratto di locazione, che è iniziato il 15 gennaio 2025, è stato stipulato con un importante fornitore internazionale di servizi di produzione, ingegneria e logistica. L'accordo copre 600.000 piedi quadrati nel primo anno e 450.000 piedi quadrati nel secondo anno.
Il nuovo tasso di locazione è superiore ai recenti accordi di mercato e si confronta favorevolmente con l'affitto in scadenza su base netta per piede quadrato. È interessante notare che l'accordo è stato concluso senza affitti gratuiti o miglioramenti per il locatario, a differenza del contratto di locazione originale che aveva requisiti specifici da parte del locatario che influenzavano il tasso.
Plymouth Industrial REIT (NYSE: PLYM) ha conseguido un contrato de arrendamiento de dos años para su edificio industrial de Clase A de 769,500 pies cuadrados en el submercado de Metro East en St. Louis. El contrato de arrendamiento, que comenzó el 15 de enero de 2025, es con un importante proveedor internacional de servicios de fabricación, ingeniería y logística. El acuerdo cubre 600,000 pies cuadrados en el primer año y 450,000 pies cuadrados en el segundo año.
La nueva tarifa de arrendamiento es más alta que los acuerdos recientes del mercado y se compara favorablemente con el alquiler que está por expirar en una base neta por pie cuadrado. Cabe destacar que el acuerdo se ejecutó sin alquileres gratuitos ni mejoras para el inquilino, a diferencia del contrato de arrendamiento original que tenía requisitos específicos del inquilino que afectaban la tarifa.
Plymouth Industrial REIT (NYSE: PLYM)은 세인트루이스의 메트로 이스트 서브마켓에 위치한 769,500 제곱피트 규모의 A등급 산업 건물에 대해 2년 임대 계약을 체결했습니다. 이 임대 계약은 2025년 1월 15일에 시작되며, 주요 국제 제조, 엔지니어링 및 물류 서비스 제공업체와 체결되었습니다. 계약은 첫해 600,000 제곱피트와 두 번째 해 450,000 제곱피트를 포함합니다.
새로운 임대료는 최근 시장 계약보다 높으며, 평방 피트당 실제 유효 임대료와 비교할 때 긍정적입니다. 특히, 이전 계약에 비해 무료 임대료나 임차인 개선 없이 계약이 체결된 점이 주목할 만합니다. 이전 계약은 임대료에 영향을 미치는 특정 임차인 요건이 있었던 반면, 이번 계약은 그런 요구사항이 없었습니다.
Plymouth Industrial REIT (NYSE: PLYM) a obtenu un contrat de location de deux ans pour son bâtiment industriel de Classe A de 769 500 pieds carrés dans le sous-marché de Metro East à St. Louis. Le contrat de location, qui a débuté le 15 janvier 2025, a été signé avec un grand fournisseur international de services de fabrication, d'ingénierie et de logistique. L'accord couvre 600 000 pieds carrés la première année et 450 000 pieds carrés la deuxième année.
Le nouveau taux de location est supérieur aux récents contrats du marché et se compare favorablement au loyer expirant sur une base nette par pied carré. Il est intéressant de noter que l'accord a été signé sans loyer gratuit ni améliorations pour le locataire, contrairement au contrat de location original qui avait des exigences spécifiques du locataire influençant le taux.
Plymouth Industrial REIT (NYSE: PLYM) hat einen zweijährigen Mietvertrag für sein 769.500 Quadratfuß großes Industriegebäude der Klasse A im Metro East Submarkt von St. Louis abgeschlossen. Der Mietvertrag, der am 15. Januar 2025 begonnen hat, wurde mit einem großen internationalen Anbieter von Fertigungs-, Ingenieur- und Logistikdienstleistungen abgeschlossen. Der Vertrag umfasst 600.000 Quadratfuß im ersten Jahr und 450.000 Quadratfuß im zweiten Jahr.
Die neue Mietrate liegt über den aktuellen Marktverträgen und vergleicht sich vorteilhaft mit der auslaufenden Miete auf Basis des Nettomietpreises pro Quadratfuß. Bemerkenswert ist, dass der Vertrag ohne kostenlose Miete oder Verbesserungen für den Mieter abgeschlossen wurde, im Gegensatz zum ursprünglichen Mietvertrag, der spezifische Anforderungen des Mieters hatte, die den Satz beeinflussten.
- Secured new lease at higher than market rates
- No free rent or tenant improvements required in new lease
- Favorable comparison to expiring rent on net effective basis
- Reduced space commitment in second year (from 600,000 to 450,000 sq ft)
- Partial building occupancy (600,000 out of 769,500 sq ft)
Insights
This lease transaction represents a strategic win for Plymouth Industrial REIT, showcasing several positive elements that strengthen their market position. The deal structure is particularly noteworthy - securing a major international tenant while achieving higher-than-market rates without concessions is a significant accomplishment in the current industrial real estate landscape.
The flexible space arrangement, transitioning from 600,000 sq ft to 450,000 sq ft, demonstrates sophisticated asset management. This structure allows Plymouth to potentially capture additional upside by marketing the differential space during the second year, while maintaining stable cash flow from a credit-worthy tenant. The absence of free rent periods and tenant improvements is particularly advantageous, as it eliminates typical lease-up costs that often impact net effective rents.
The St. Louis Metro East submarket has been experiencing robust industrial demand and this lease validates the property's competitive positioning. The ability to secure higher rates than recent market comparables suggests:
- Strong property fundamentals and location attributes
- Effective negotiation leverage due to the building's Class A specifications
- Healthy market dynamics supporting rent growth
For investors, this transaction provides multiple positive signals about Plymouth's operational execution and asset quality. The company's ability to attract and secure a major international tenant while maintaining favorable lease terms indicates strong property management capabilities and positions them well for future leasing activity in their portfolio.
BOSTON, Jan. 23, 2025 (GLOBE NEWSWIRE) -- Plymouth Industrial REIT, Inc. (NYSE: PLYM) announced it has executed a two-year lease at its 769,500-square-foot Class A industrial building in the Metro East submarket of St. Louis that commenced on January 15, 2025. The lease is for 600,000 square feet during the first year and 450,000 square feet during the second year with a major international manufacturing, engineering, and logistics service provider.
Jeff Witherell, Chief Executive Officer and Co-Founder of Plymouth, noted, “We are pleased to execute a two-year lease for our St. Louis property at a rate higher than recent signings in the market, reflecting the superior quality of the asset. We will partner with the new tenant in meeting their space requirements over the coming years, while continuing to market the property to fill the remainder of the building.”
As previously announced in Plymouth’s Fourth Quarter Activity Update on January 10, 2025, the new lease rate compares favorably to the expiring rent on a net effective per square foot basis as there was no free rent or tenant improvements provided, as compared to the original lease which had specific tenant requirements that influenced the lease rate.
About Plymouth
Plymouth Industrial REIT, Inc. (NYSE: PLYM) is a full service, vertically integrated real estate investment company focused on the acquisition, ownership and management of single and multi-tenant industrial properties. Our mission is to provide tenants with cost effective space that is functional, flexible and safe.
Forward-Looking Statements
This press release includes “forward-looking statements” that are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 and of Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements include, but are not limited to, statements regarding future leasing activity and expectations for the timing of the closing of the Sixth Street Chicago Joint Venture. The forward-looking statements in this release do not constitute guarantees of future performance. Investors are cautioned that statements in this press release, which are not strictly historical statements, including, without limitation, statements regarding management's plans, objectives and strategies, constitute forward-looking statements. Such forward-looking statements are subject to a number of known and unknown risks and uncertainties that could cause actual results to differ materially from those anticipated by the forward-looking statements, many of which may be beyond our control. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “may,” “plan,” “seek,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe” or “continue” or the negative thereof or variations thereon or similar terminology. Any forward-looking information presented herein is made only as of the date of this press release, and we do not undertake any obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.
Contact:
John Wilfong
SCR Partners
IR@plymouthreit.com
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