Fortress Makes $368M Buy of Four UPS Properties
Fortress Investment Group has purchased a mix of office and industrial properties from UPS for roughly $368 million, as the global shipping firm continues its cost-cutting measures.
The portfolio includes four assets in the Atlanta, Southern California and Chicago regions, as reported by CoStar. UPS plans to retain occupancy at one of the buildings via a sale-leaseback, which is the office property in Alpharetta, Georgia. The other buildings are located in Bensenville, Illinois, as well as Inglewood and Jurupa Valley, both in California.
The move by UPS likely falls in line with the company's $3.5 billion cost savings plan in response to the tariffs imposed by the Trump Administration. In the first quarter, the Atlanta, Georgia-based firm revealed that it planned to cut 20,000 jobs and close over 70 leased and owned locations. Of which, 68 are expected to last permanently, according to CoStar.
Another example of UPS cutting back on its real estate footprint was moving its 500 employees at the former 35 Glenlake Parkway location to its nearby headquarters at 55 Glenlake Parkway in Atlanta.
Overall, the industrial sector of CRE faces the biggest headwinds from the tariff impact. A recent forecast from NAIOP predicts that net absorption will stay “nearly flat” through the second half of the year, as supply has been outpacing demand. Plus, a recession could cause negative absorption through early 2026, NAIOP warned.
Recently, Adam Petrillo, executive managing director for Newmark’s Industrial Advisory Group, told GlobeSt that seaport markets like Newark, Southern California and Savannah will be hit the hardest.
Source: GlobeSt/ALM