Investment-grade logistics real estate for larger 1031 exchanges, from a buyer’s broker with 4 FedEx Ground closings totaling $75.4M+.
A FedEx net lease property is usually a FedEx Ground distribution facility, ranging from smaller delivery stations to 100,000 to 200,000+ square-foot hubs on 20 or more acres, leased to Federal Express Corporation, which absorbed FedEx Ground in 2024. FedEx Corporation is rated BBB by S&P and Baa2 by Moody’s. Most FedEx Ground leases are NN: FedEx pays taxes, insurance and most maintenance, while the landlord typically keeps the roof, structure and sometimes the parking areas. Larger price points and higher cap rates than most retail NNN make FedEx a common fit for larger 1031 exchanges that want investment-grade credit with more yield.
Solid Investments FL has represented buyers on 4 FedEx Ground transactions totaling $75.4M+ in Indiana, Virginia and Florida, including a newly built 198,839-square-foot facility next to Langley Air Force Base in Hampton, Virginia. See them in our track record. Our buyer representation is always free to you.
| Tenant | Federal Express Corporation (FedEx Ground merged into it in June 2024); confirm the tenant and any FedEx Corporation guaranty in the lease and estoppel |
|---|---|
| Parent company | FedEx Corporation (NYSE: FDX), Memphis, Tennessee |
| Credit rating | S&P BBB / Moody’s Baa2 (investment grade) |
| Recent change | FedEx Freight was spun off as a separate public company (FDXF) on June 1, 2026; Freight facilities now lease to that separate company |
| Facility types | Ground delivery stations and hubs, from about 6,000 SF to 200,000+ SF, with large truck courts and parking |
| Typical lease term | About 10–15 years on new or expanded facilities |
| Lease type | Mostly NN (landlord typically covers roof, structure and sometimes parking); some NNN |
| Rent increases | Varies: often modest during the term, with larger increases (10%–15%) in the option periods |
| Typical cap rate (2026) | ~6.0%–7.0%, depending on size, remaining term and location |
| Typical price range | About $1M–$10M for smaller stations; $10M–$30M+ for large Ground hubs |
Credit ratings as of October 2026. Cap rates and pricing reflect current market conditions and vary by deal.
FedEx Ground merged into Federal Express Corporation in 2024, and FedEx Freight became a separate company in 2026. Confirm exactly which entity signs the lease and whether FedEx Corporation guarantees it, using the lease and a tenant estoppel.
Most FedEx Ground leases are NN, so the landlord typically owns the roof, structure and sometimes the parking lot and truck court. Check roof age and warranties, paving condition and how much to set aside in reserves.
FedEx is combining its Express and Ground networks under its Network 2.0 plan, which consolidates some operations. Understand the facility’s role in the network and how much FedEx has invested in it.
Long occupancy and expansions are strong signals. Our Hammond, Indiana closing was a facility FedEx had operated for nearly 20 years and recently expanded to 96,214 SF.
FedEx leases often have small increases during the term and larger ones in the options; our Hampton closing had a 3% bump in year 11 and 10% in each option, and Hammond had 15% in the first option.
Proximity to population centers, highways and labor matters most for logistics. Large sites with good truck access are valuable to many other users if FedEx ever leaves.
FedEx facilities are typically bought fee simple, so you own a large building and extensive site improvements, and they are depreciable. The building is depreciated over 39 years, and a cost segregation study can separate out parts of the property that can be written off much faster. With large paved truck courts and parking areas, logistics properties often have significant site improvements, and under current law that reclassified portion qualifies for 100% first-year (bonus) depreciation.
A FedEx Ground facility often carries millions of dollars of depreciable building and site improvements, working for you every year you own it.
Truck courts, paving, parking, site lighting, fencing, landscaping and certain building systems and fixtures typically qualify as 5-, 7- or 15-year property instead of 39-year building.
On a property of this size, a cost segregation study is a small cost relative to the potential benefit. Your CPA can estimate the first-year deduction before you commit.
1031 exchange buyers: how much of your basis is eligible depends on how your exchange is structured. Depreciation recapture applies when you sell, passive-activity rules can limit who benefits, and state conformity varies. This is general information, not tax advice — confirm with your CPA and a cost segregation specialist before you buy.
We’ve helped buyers close 4 FedEx Ground transactions totaling $75.4M+:
Industrial / Logistics
Industrial / Logistics
Industrial / Logistics
Industrial / Logistics
Solid Investments FL is a NNN buyer's brokerage based in Lakewood Ranch (Sarasota), FL, that has represented buyers on 4 FedEx Ground transactions totaling $75.4M+ in Indiana, Virginia and Florida. We help investors and 1031 exchange buyers underwrite and close FedEx facilities nationwide, and our buyer representation is free.
As of 2026, FedEx net lease properties generally trade around 6.0% to 7.0%, depending on the size of the facility, remaining lease term, lease structure and location. Larger, newer Ground hubs with longer terms tend to trade at the lower end.
As of October 2026, FedEx Corporation is rated BBB by S&P and Baa2 by Moody's, both investment grade.
FedEx Ground Package System merged into Federal Express Corporation in June 2024, so leases originally signed by FedEx Ground are generally now obligations of Federal Express Corporation. Confirm the tenant and whether FedEx Corporation guarantees the lease using the lease documents and a tenant estoppel.
Most FedEx Ground leases are NN. FedEx pays real estate taxes, insurance and most maintenance, while the landlord typically keeps responsibility for the roof, structure and sometimes the parking lot and truck court. Some leases are NNN, so always review the lease.
On June 1, 2026, FedEx spun off FedEx Freight as a separate public company trading as FDXF. FedEx Ground facilities remain with FedEx's main operating company, while FedEx Freight facilities now lease to the separate FedEx Freight company, so confirm which entity is on any lease you are considering.
For larger exchanges, often yes. FedEx offers investment-grade credit, long leases and higher cap rates than most retail NNN tenants, with price points that can absorb a large exchange in a single property. The trade-off is NN landlord responsibilities, so budget for roof, structure and paving.
Yes. FedEx facilities are typically bought fee simple, so the building is depreciated over 39 years, and a cost segregation study can reclassify truck courts, paving, lighting and other items into 5-, 7- and 15-year property, which qualifies for 100% first-year (bonus) depreciation under current law. Confirm with your CPA.
General information only, not investment, tax or legal advice. Credit ratings and market data change; verify current figures before investing.
We’ve closed $75.4M+ of FedEx Ground facilities. Tell us your exchange size and timeline; our buyer representation is completely free.
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