FedEx Is Closing 475 locations

FedEx Is Closing 475 locations. Here's What the Leases Say.

In late September, FedEx will shut down two Inland Empire locations in Victorville and Palm Springs and two more in metro St. Louis, Earth City and Maplewood.  This is part of FedEx’s Network 2.0 initiative, targeting $2 billion in annual savings.  They will close more than 475 U.S. locations by the end of 2027, about 30% of their footprint, and have already shut down more than 200 as of February (Supply Chain Dive). Nearly 490 new "optimized" locations were already live in June, carrying 45% of eligible volume, headed to 65% before peak (Q4 call).

DealGround data highlights the exposure and paints a picture of what’s changing. View the full article.

The closures so far: what the data shows

We mapped more than 20 confirmed 2026 location closures across nine states.

• It comes in waves, by region. Nine upstate New York locations (Syracuse, Buffalo, Ithaca, Binghamton, Elmira, Utica, Watertown, Plattsburgh, Conklin) closed together in June. California and Missouri close late September. Expect the next wave to be a market, not a scatter.

• The buildings being shed are small and old. Across the closing locations DealGround data shows the median is about 26,000 SF and built 1987. These are 1980s Express locations on two-to-five-acre lots with a courier fleet out front.

• FedEx shuts down redundant sites in town. Binghamton's Link Drive location closed in June; the 458,000 SF FedEx Ground hub across the city (built 2022) is still operating. Palm Springs loses the Bird Center location while a 150,560 SF, 2015-vintage FedEx facility on Garnet Ave carries on with a lease to 2030. If FedEx has a big modern Ground building in a trade area, the small Express box is the redundant one.

The leases by the numbers

DealGround reviewed lease-level data on 68 single-tenant FedEx industrial properties across 20 states on DealGround. 

• 49% expire by the end of 2028. 33 of 68 leases end on or before Dec. 31, 2028.

• The recent listings are the short term deals. Of 31 FedEx buildings marketed since January 2025, 11 expire by 2028, and five came to market with under two years of term. 

• Median NOI is about $500K small-location money. The top of the set is $2–5 million hubs; the bottom is $60–150K Express locations.

• The cap-rate difference is significant. Short-term deals are asking 6.0% to 8.25%. Big modern hubs are asking and/ or trading at 4.5% to 6.5%.

Who owns the buildings FedEx is leaving

We ran the closing locations and the surviving hubs through DealGround's ownership records. Individual names aside, the split is stark:

• Every surviving hub is institutional or FedEx itself. All six large hubs we checked are held by national portfolio owners with multiple properties, and county records show Federal Express Corporation as the 2026 buyer of both the Danville and Wilmington hubs. FedEx is buying the boxes it's keeping and leasing the ones it's leaving.

• The closure list is mostly smaller private capital  The majority of closing locations are held by individuals, family partnerships, or single-purpose LLCs with a limited number of properties.  Roughly four in five of those owners' portfolios are mixed with apartments, retail, office, or land rather than industrial indicating less sophistication and experience than the first group.

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Happy hunting. LFG!
The DealGround Team