First Industrial (FR) 2Q26 update: Development starts in focus; FR and TRNO PT increase

Research evidence excerpt

First Industrial (FR) 2Q26 update: Development starts in focus; FR and TRNO PT increase

Equity Research

23 July 2026 | 6:20PM EDT

AMERICAS REAL ESTATE: REITS

First Industrial (FR) 2Q26 update: Development starts in focus; FR and

TRNO PT increase

Following 2Q26 FR earnings we update our estimates and go through takeaways from Caitlin Burrows

+1(212)902-4736 |

the FR earnings call: tenant demand, development starts and lease-up, market caitlin.burrows@gs.com

Goldman Sachs & Co. LLC

performance, and guidance. Given the stronger than expected 2Q FR results,

Jeremy Kuhlincluding sooner lease-up progress and higher leasing spreads, we increase our 2026 +1(212)357-1704 | jeremy.kuhl@gs.com

estimates and price target for FR. Goldman Sachs & Co. LLC

Shailee Lnu

Separately, we increase our TRNO price target. +1(332)245-7913shailee.x.lnu@gs.com|

Goldman Sachs India SPL

Harrison Slater, CFA

Earnings call highlights and reactions +1(212)902-7428harrison.slater@gs.com|

Demand improving

n Management discussed that demand has picked up as indicated by more touring

activity and increased decision-making, which has resulted in lease up activity at

FR properties and increased guidance. Management elaborated that there has

been more activity with bigger spaces (700k to 1mn is up 127%, greater than

1mn is up 117%) as there are fewer vacancies which is causing competition and

increased decision-making. FR stated that for midsize range, there is still

available product for tenants to choose.

n In terms of tenants, 3PL activity (largest market share) is up 18% YoY, with

manufacturing, food and beverage, and auto activity each up more than 25%,

which FR believes is an indication that momentum has improved across both

space sizes and tenant categories. FR also noted there has been incremental