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# Rexford Expects Re-Leasing Rents To Fall In The Low-To-Mid-Teens Percent Range For Years
- URL: https://www.bullished.co/rexford-expects-re-leasing-rents-to-fall-in-the-low-to-mid-teens-percent-range-for-years-7e682999/
- Published: 2026-10-23T16:01:15.000Z
- Updated: 2026-10-23T16:01:15.000Z
- Description: CFO Mike Fitzmaurice says rents on renewing leases will keep resetting lower while same-property occupancy sits near 97%.
- Author: Matteo Parrino
- Tags: Earnings, REXR, Industry: Real Estate

[Rexford Industrial Realty](https://www.bullished.co/tag/rexr/), which owns industrial buildings in Southern California infill markets, expects cash rents on re-leased space to average negative low-to-mid-teens over the next couple of years, CFO Mike Fitzmaurice said on the company's third-quarter earnings call. The drag comes from leases signed at the 2022 and 2023 peak, even as occupancy has risen.

## Spreads stay negative, with a caveat

Answering a Wells Fargo analyst, Fitzmaurice said management is being "clear-eyed and direct" about the rent resets. He said the forecast assumes market rents stay flat, so there "could be some upside if rents accelerate."

Selling non-core assets improved the spread outlook by about [200 basis points](https://www.sec.gov/Archives/edgar/data/1571283/000157128326000058/rexrex991q3-2026.htm?ref=bullished.co) (two percentage points), he said. That is worth roughly $1.5 million of NOI, or net operating income, per year, and about 30 basis points of same-property NOI growth.

On next year's building blocks, he told a Bank of America analyst that same-property occupancy ended the quarter at about 97%, above the roughly 96% average in the 2026 outlook. New leases carry about 3.5% annual rent steps, and the company sold many of the assets facing the steepest resets.

## How full is full

A JPMorgan analyst asked what full occupancy means. Fitzmaurice said same-property occupancy can reach 97% to 98% over the next couple of years if the market stays supportive. Total portfolio occupancy, about 91% now, can reach 94% to 95%, he said.

He said the [200-basis-point sequential gain](https://www.sec.gov/Archives/edgar/data/1571283/000157128326000058/rexrex991q3-2026.htm?ref=bullished.co) in same-property occupancy had "nothing to do with the asset sales." He credited 3.7 million square feet of leasing, 87% of tenants retained, and two Inland Empire tenants, about 415,000 square feet combined, that took space in early September rather than in the fourth quarter.

Chief Operating Officer John Nahas said roughly 600,000 square feet of repositioning and development leases signed in the quarter will add more than $14 million of annualized NOI once they commence. Fitzmaurice said about another $40 million of NOI is tied to space in lease-up and under construction.

## Sales, buybacks and the 2027 outlook

Rexford closed a $1.2 billion sale of a 5.2 million square foot, 22-property portfolio this quarter. CEO Laura Clark said it is the largest transaction in the company's history and brings dispositions to $1.5 billion toward a $2 billion realignment, with $500 million left.

Fitzmaurice said leverage fell to 3.8 times. The company has repaid $425 million of $1 billion in 2027 debt and plans to repay the remaining $575 million at maturity in March. It has bought back $709 million of stock this year. It raised the midpoint of full-year core FFO (funds from operations) guidance by two cents to $2.41 to $2.44 per share.

The company's market value was $8.1 billion in Friday morning trading.

Clark said management will lay out its 2027 outlook when it reports next quarter.

### Sources

- [Rexford Industrial reports Q3 revenue below estimates; 2026 earnings guidance revised higher (REXR:NYSE) | Seeking Alpha](https://seekingalpha.com/news/4656285-rexford-industrial-reports-q3-revenue-below-estimates-2026-earnings-guidance-revised-higher?ref=bullished.co) — seekingalpha.com
- [Rexford Industrial Realty (REXR) Stock May Be Near Fair Value On Q3 Results](https://uk.finance.yahoo.com/news/rexford-industrial-realty-rexr-stock-101834941.html?ref=bullished.co) — Yahoo Finance
- [Rexford Industrial: Q3 Earnings Snapshot – WTOP News](https://wtop.com/national/2026/10/rexford-industrial-q3-earnings-snapshot/?ref=bullished.co) — wtop.com
- [Document](https://www.sec.gov/Archives/edgar/data/1571283/000157128326000058/rexrex991q3-2026.htm?ref=bullished.co) — sec.gov
- [Rexford Industrial (REXR) Meets Q3 FFO Estimates](https://finance.yahoo.com/real-estate/articles/rexford-industrial-rexr-meets-q3-202502789.html?.tsrc=rss&ref=bullished.co) — Yahoo Finance

### More on Rexford Industrial Realty

- [Rexford Lifts 2026 Core FFO Outlook To $2.41-$2.44 A Share As Debt Falls And Buybacks Reach $708.7 Million](https://www.bullished.co/rexford-lifts-2026-core-ffo-outlook-to-2-41-2-44-a-share-as-debt-falls-and-buybacks-reach-1a56d03c/)

[All Rexford Industrial Realty (REXR) coverage →](https://www.bullished.co/tag/rexr/)