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INVESTMENT HIGHLIGHTS
Best-In-Class Corporate Credit - FedEx Corporation (NYSE: FDX) holds an investment-grade BBB/Stable credit rating via S&P and boasts a current market cap of approximately $65 billion. FedEx has positioned itself to take full advantage of the explosion of e-commerce and the resultant business-to business and business-to-consumer shipments.
Early Lease Extension With Increase - FedEx recently signed an early five (5) year lease extension, which includes a 7.5% increase to base rent, in September 2025, reaffirming tenant’s commitment to continued operations at this property into the future.
Strategic Logistics Location - FedEx is operating less than 1,000 feet from U.S. Highway 90. US-90 is the primary thoroughfare of Sierra Vista and connects this part of Arizona to Interstate 10. I-10 is less than 20 miles north of the property and connects this area with major markets Tucson, Phoenix, and El Paso. Additionally, the property is only about 6 miles away from Fort Huachuca, a long-standing United States Army installation established in 1877.
Minimal Landlord Responsibilities - FedEx is operating under a passive net lease structure in which landlord’s responsibilities are limited to the roof and structure of the building.
Strong Submarket Performance - The Sierra Vista submarket boasts strong recent fundamentals including a vacancy rate of only 2.5% and an average rent growth of 5.1% on 1.6M+ square feet of inventory over the last three years.
2015 Build-To-Suit Construction - The property was a built-to-suit for FedEx in 2015, demonstrating their strategic commitment to operating at this site while also shielding an investor from potential capital expenditure liabilities in the near future.
E-Commerce Resistant - The property features 26,795 square feet of space with 5 dock-high doors, and 10 Drive-Ins. The nature of this asset type makes it an ideal hedge against brick-and-mortar retail and the emergence of e-commerce.
Exclusively Listed By
BJ Feller
Arizona Managing Broker Contact Broker AZ Lic. #BR685825000
Northmarq
303 East Wacker Drive, Suite 1111 Chicago, Illinois 60601
