First Industrial Realty Trust (FR) Nareit REITweek: 2026 Investor Conference summary

Business overview and growth strategy

• Focuses exclusively on U.S. industrial development, ownership, and management, with a $12–13 billion portfolio and 70 million sq ft of assets.

• Speculative development is the primary growth engine, with $1.3 billion in value created over the past decade and 7% cash yields.

• Transformation from Midwest to coastal/core markets is largely complete, with two-thirds of the portfolio new since 2010.

• Ongoing capital deployment prioritizes speculative development, opportunistic share buybacks, and selective acquisitions.

• Nashville and South Florida are key expansion markets, with significant land holdings and future growth focus.

Market conditions and leasing demand

• Tenant demand has remained strong despite geopolitical events and rising input costs, with no discernible impact from recent conflicts or oil price changes.

• Leasing activity has picked up significantly in the last six months, especially for both large and small spaces.

• Pennsylvania and Texas are among the most active markets, with strong leasing momentum and new leases signed quickly after project completion.

• Nashville, Dallas, Houston, South Florida, and Central PA are top-performing markets; Denver lags in recovery.

• SoCal is stable with flat rents, while Denver has more alternatives for tenants and slower recovery.

Portfolio performance and rental outlook

• Embedded rent growth is supported by pre-peak leases and favorable market mix, especially in Dallas and Atlanta.

• Cash rental rate growth has been robust in recent years, attributed to disciplined development and portfolio strategy.

• Guidance for 2026 leasing spreads is 30–40%, with 2027 expected to benefit from market positioning.

• Rent growth projections: 0–5% in most markets, flat in SoCal, and up to 8% in Nashville and Dallas.

• Entering a more stable, predictable growth phase similar to pre-2000s trends.