STAG Industrial, Inc. (STAG): PESTLE Analysis [Nov-2025 Updated]

You're defintely watching STAG Industrial's stock and wondering how the 2025 landscape impacts their dividend and growth. The truth is, while e-commerce demand keeps industrial rents strong, the twin pressures of higher interest rates and shifting federal tax policies are creating real headwinds for their acquisition model. STAG's single-tenant strategy offers great long-term lease stability, but it also concentrates risk; if a major tenant goes under, that's a big hole. We need to look beyond the surface rent growth and map out exactly how Political, Economic, Social, Technological, Legal, and Environmental (PESTLE) forces are reshaping their balance sheet and operational risk profile right now.

STAG Industrial, Inc. (STAG) - PESTLE Analysis: Political factors

Shifting federal tax policies on corporate real estate depreciation.

You need to pay close attention to the federal tax landscape in 2025, as it directly impacts STAG Industrial, Inc.'s cash flow and investment decisions. The most critical change is the permanent restoration of 100% bonus depreciation for qualified property, a major win for real estate investment trusts (REITs) like STAG. This provision, which applies to qualifying property placed in service after January 19, 2025, allows for the immediate expensing of costs for assets like Qualified Improvement Property (QIP) and certain land improvements, accelerating tax deductions and boosting near-term after-tax returns.

Plus, the new elective 100% depreciation deduction for Qualified Production Property (QPP) is a direct incentive for industrial real estate. QPP includes nonresidential real property used in manufacturing or refining, which is right in STAG's wheelhouse. This tax certainty is defintely a tailwind for industrial development. Another significant change is in the business interest deduction rules under Section 163(j): starting in 2025, the calculation for adjusted taxable income (ATI) shifts from the restrictive Earnings Before Interest and Tax (EBIT) to the more favorable Earnings Before Interest, Taxes, Depreciation, and Amortization for Real Estate (EBITDAre). This change increases the amount of deductible interest, which is especially beneficial for a debt-reliant entity like a REIT.

Local zoning and permitting delays slowing new development pipeline.

While federal policy offers a clear path, the political risks at the local level are still a major headache for industrial development. Local zoning and permitting delays are a persistent drag on the development pipeline, which is a key part of STAG's growth strategy. You see municipalities, like Santa Ana, California, implementing moratoria on new industrial use approvals, effectively halting new projects to address local concerns about traffic and environmental impact.

This ambiguity and procedural friction can add months-or even years-to a project timeline, which directly increases carrying costs and delays rental income. To give you a sense of scale, STAG has been actively developing, signing leases for 1.6 million square feet of warehouse space across its development projects year-to-date in 2025. The ability to execute on its active pipeline, which totaled approximately 2.5 million square feet across 11 buildings as of Q1 2025, is constantly under threat from these hyper-local political forces. Even in places like Portland, Oregon, new code amendments (like the Code Alignment Project) are being passed in late 2025 specifically to reduce these delays, which shows just how bad the problem has become nationwide.

Trade policy and tariffs impacting logistics and warehouse demand.

The new wave of US trade policy and tariffs in 2025 creates a dual-edged political factor for STAG. On one hand, the tariffs-such as the 25% tariff on all steel and aluminum imports effective March 12, 2025, and new duties on heavy vehicles-are driving up construction costs. Since steel can make up a significant portion of warehouse construction costs, this is a direct hit to the profitability of new development.

But here's the flip side: trade uncertainty and tariffs on imports from over 90 countries (with an average effective tariff rate just below 18% as of November 2025) are forcing companies to rethink their supply chains. The immediate reaction is to build up inventory reserves to avoid potential disruptions, which directly increases demand for warehouse occupancy. This 'inventory-building' effect is a short-term boost for STAG's occupancy rate, which was already strong at 95.8% on the total portfolio as of September 30, 2025. The long-term impact, however, is a potential slowdown in global trade and a drag on US GDP growth, which could cool demand for logistics space in 2026.

Increased scrutiny on foreign investment in US commercial property.

The political environment in 2025 shows an undeniable increase in scrutiny on foreign direct investment (FDI) in US commercial real estate (CRE), especially in the industrial sector. The 'America First Investment Policy' National Security Policy Memorandum (NSPM) issued in February 2025 emphasizes protecting US real estate near sensitive facilities, leading to an expanded role for the Committee on Foreign Investment in the United States (CFIUS).

This means foreign capital-a major source of liquidity for the US CRE market, which is forecast to see $542 billion in total investment in 2025-is becoming more cautious. While some foreign investors are still increasing their US real estate allocations (a survey showed 44% plan to increase allocations in 2025), over half of investors report foreign investors are shrinking their appetite for US CRE compared to 2024. For STAG, which relies on a healthy, liquid market for its acquisition and disposition strategy, this political risk translates to:

• Slower transaction velocity for asset sales, potentially impacting the ability to dispose of non-core assets efficiently.
• Increased due diligence complexity for any foreign-backed buyers, adding time and risk to closing deals.
• Heightened risk of a CFIUS review for properties near military bases or critical infrastructure, a key consideration given STAG's national footprint.

STAG Industrial, Inc. (STAG) - PESTLE Analysis: Economic factors

Higher interest rates increasing the cost of capital for acquisitions.

The persistent high-rate environment has defintely increased the cost of capital, making accretive acquisitions harder to find. When the 10-year Treasury yield is hovering in the 4.5-5.0% range by late 2025, the cost of debt for a REIT naturally rises. For STAG Industrial, this is a clear headwind for its external growth strategy.

Here's the quick math: STAG funded a $550 million private placement in June 2025 with a weighted average fixed interest rate of 5.65%. This is a significant cost. For a recent Q3 2025 acquisition, STAG reported a Cash Capitalization Rate of 6.6% on a $101.5 million purchase. The spread between the cost of new debt and the cap rate is tight, and in some cases, the cost of capital (especially equity) can exceed the cap rate, which means new acquisitions may not immediately create value. Still, STAG's net debt to annualized run rate Adjusted EBITDAre remains manageable at 5.1x as of September 30, 2025.

Inflationary pressure raising property operating and maintenance expenses.

Inflation, particularly in labor and materials, is a real-world cost that hits property operating and maintenance expenses, even for a triple-net lease (NNN) focused REIT like STAG. While NNN leases pass most operating costs to the tenant, STAG still bears the cost of capital expenditures (CapEx) and certain non-reimbursable expenses, which inflate with the Consumer Price Index (CPI).

The financial data shows this pressure: STAG Industrial's operating expenses for the twelve months ending September 30, 2025, totaled $0.518 billion, representing a 4.19% increase year-over-year. This growth rate, while moderate, eats into the bottom line and requires STAG to push for higher rents just to maintain its margin. The good news is that the company's strong leasing spreads are more than offsetting this expense creep.

Strong industrial market rent growth, particularly in infill locations.

The industrial market's structural tailwinds-e-commerce, supply chain re-shoring-are still strong, especially in the secondary and infill markets where STAG focuses. This demand is translating into impressive rent growth upon lease turnover, which is STAG's primary organic growth engine. The national rent growth figure of about 1.4% Year-over-Year as of Q3 2025 is misleading because STAG is outperforming the average by a huge margin.

The company's leasing activity in 2025 has been phenomenal. As of late October 2025, STAG had addressed 98.7% of its expected 2025 new and renewal leasing, achieving a weighted average Cash Rent Change of 23.9% across 14.0 million square feet. That's a massive spread. This strength is also reflected in the raised full-year 2025 guidance for Same Store Cash Net Operating Income (NOI) growth, which is now expected to be between 3.75% and 4.00%.

Here's a snapshot of the organic growth drivers:

Potential for a mild economic slowdown impacting tenant solvency.

You're right to consider the downside of a slowdown. The single-tenant focus of STAG Industrial means a tenant default can have a more concentrated impact on a single property's cash flow. This is the core risk in a slowing economy, but STAG manages it well.

The company mitigates this risk through tenant credit quality and diversification. Specifically, 59% of STAG's tenants have annual revenue exceeding $1 billion, and 84% have revenue over $100 million. This focus on larger, more established companies is why STAG has historically incurred credit losses of less than 0.1% of its revenues since its IPO. The portfolio's high occupancy rate, at 95.8% overall as of Q3 2025, also suggests tenant health remains robust despite broader economic uncertainty.

The key risk to watch is the industrial sector's national vacancy rate, which has climbed to roughly 6.9% as of Q1 2025, the highest in over a decade, but STAG's portfolio occupancy is holding firm.

• Monitor credit losses: Keep an eye on the <0.1% historical loss rate.
• Check tenant retention: STAG's Q3 2025 retention was 63.4% for expiring leases, which is a key solvency indicator.
• Prioritize tenant quality: 84% of tenants have over $100 million in revenue.

STAG Industrial, Inc. (STAG) - PESTLE Analysis: Social factors

You're looking at the social landscape for industrial real estate, and the takeaway is simple: the warehouse is no longer just a box. Consumer behavior and labor market dynamics have fundamentally changed the asset class, turning it into a strategic, human-centric piece of the supply chain. This shift is a huge tailwind for owners like STAG Industrial, Inc. who focus on modern, adaptable facilities in key distribution nodes.

Continued high demand for e-commerce fulfillment and last-mile logistics space.

The biggest social factor driving industrial demand is the consumer's expectation for speed. E-commerce is not slowing down; it's just getting closer to the customer, which means a relentless need for fulfillment and last-mile logistics space. The North American e-commerce fulfillment market is estimated to reach $35.4 billion in 2025, a massive market that directly translates to leasing demand for STAG Industrial's properties.

This growth is structural, not cyclical. The US e-commerce fulfillment services market is expected to grow at a Compound Annual Growth Rate (CAGR) of 14.1% from 2025 to 2030, pushing e-commerce sales to climb to 21% of total global sales in 2025. This means STAG's tenants-from third-party logistics (3PL) providers to major retailers-are constantly needing more space, or more efficient space, to handle the volume. It's a simple equation: more online sales equals more demand for the industrial buildings that house the inventory.

Labor shortages in warehousing driving demand for automated facilities.

The labor crunch in warehousing is forcing tenants to automate, and that automation requires specific, modern building specifications. Labor shortages remain the primary driver of warehouse automation investments, accounting for 25% of the top reasons for adoption. Tenants are looking for higher clear heights, reinforced floors, and more power capacity to house robotics and automated storage and retrieval systems (AS/RS).

This is a direct opportunity for STAG Industrial's portfolio, as automated buildings command higher rents and better retention. The global warehouse automation market is estimated to grow from $29.91 billion in 2025, with an estimated 4.28 million warehouse robots expected to be deployed globally this year. That's a lot of robots needing a home. Automation is a capital expenditure (CapEx) decision for the tenant, but it's a value-add feature for the landlord, helping reduce the tenant's labor costs by up to 60% and securing a long-term lease for STAG.

Demographic shift to Sunbelt and secondary markets boosting regional property values.

The mass migration to the Sunbelt and secondary markets is changing the map of US logistics. People are moving for lower taxes and a better cost of living, and industrial facilities are following them to service the new population centers. The Sunbelt region is projected to grow at 22 times the rate of non-Sunbelt regions over the next decade, which is a massive demographic shift. This population boom drives local consumer demand and necessitates new regional distribution hubs.

STAG Industrial has been ahead of this curve, strategically focusing on these secondary, high-growth markets where industrial real estate has historically outperformed non-Sunbelt real estate by over 300 basis points. You can see this in their recent activity: a Class A, 297K SF rear-load warehouse development in the greater Nashville market, a Sunbelt hub, achieved substantial shell completion in April 2025, with a lease signed in May 2025 at an expected stabilized cash yield of 9.3%. That's a strong yield, and it shows the strategy is working.

Tenant focus on employee well-being driving amenity requirements in facilities.

With the labor market so tight, tenants are now using the warehouse itself as a recruiting and retention tool-the 'flight to quality' is real in industrial. This means a focus on employee well-being is now a cost of doing business, which translates into higher building standards for STAG Industrial. For example, a survey found that access to daylight and outdoor views was the number one desired workplace attribute, with 78% of employees reporting it improved their overall happiness.

This social pressure drives demand for specific building improvements:

• Enhanced HVAC and Air Quality: Improved ventilation and localized heating/cooling to counter the physical strain and heat from equipment.
• Natural Light: Skylights and high-performance lighting to boost morale and productivity.
• Better Break Spaces: Well-designed breakrooms, outdoor seating, and even on-site fitness areas.

STAG Industrial is meeting this demand by integrating Environmental, Social, and Governance (ESG) initiatives directly into its portfolio. For instance, STAG converted 3.75 million square feet of space to LED lighting in 2024, with 57% of their portfolio featuring LED lighting by year-end, and they plan to install approximately 10 MW of solar capacity in 2025. These are not just environmental initiatives; they are social ones that directly lower a tenant's operating costs and create a more comfortable, modern workplace, which helps them retain their staff.

Here's the quick math on how social factors are influencing the asset:

If you defintely want to capture premium tenants and rent escalations, you have to build for the worker, not just the widget.

STAG Industrial, Inc. (STAG) - PESTLE Analysis: Technological factors

Rapid adoption of warehouse automation and robotics requiring specialized facility design.

The shift to warehouse automation is defintely the biggest technological driver for industrial real estate in 2025. You're seeing tenants move past simple conveyor systems and commit to advanced robotics like Autonomous Mobile Robots (AMRs) and Automated Storage & Retrieval Systems (AS/RS). This isn't just a trend; it's a necessity driven by labor shortages and the demand for speed. For STAG Industrial, this means your facilities must be 'robot-ready' to remain competitive.

This readiness translates to specific, non-negotiable building specifications. New construction and significant retrofits must accommodate the technology. For instance, STAG's new developments, like the 76,000 square foot Class A warehouse completed in Reno in January 2025, feature a 36-foot clear height and cross-dock capability. That extra vertical space is crucial for maximizing AS/RS efficiency. Here's the quick math: Taller buildings allow for more vertical storage, which means a tenant can process more volume in the same footprint, making that space more valuable to them.

The table below outlines the key physical requirements STAG must ensure to capture top-tier automated tenants, whose adoption rates are accelerating, with over 30% of warehouses expected to integrate robotics by the end of 2024, a jump from 20% in 2021.

Increased use of Artificial Intelligence (AI) in optimizing supply chain and logistics networks.

AI's impact on logistics is huge, and it directly affects your tenants' profitability, which, in turn, secures STAG's lease revenue. AI is moving beyond simple data crunching to core operational optimization. We're seeing AI-driven systems cut logistics costs by anywhere from 5% to 20% for companies that integrate it effectively. This is serious money.

The global market for AI in logistics is projected to hit $20.8 billion in 2025, showing just how much capital is flowing into these solutions. For STAG, this means the value of your real estate is increasingly tied to its ability to support this intelligence layer. Your tenants are using AI for:

• Predictive Maintenance: Forecasting when equipment in the warehouse will fail.
• Demand Forecasting: Cutting forecast errors by up to 40% to manage inventory better.
• Dynamic Routing: Optimizing internal warehouse traffic for AMRs.

The fact that 94% of companies plan to use AI to assist with decision-making shows that this is an essential utility, not a luxury. If your buildings don't have the necessary infrastructure to handle the data flow, your tenants' AI-driven efficiency gains will stall, making your properties less desirable over time.

PropTech (Property Technology) platforms improving property management efficiency and data analysis.

PropTech is how STAG can drive internal efficiencies and manage its massive portfolio of 119.2 million square feet across 601 buildings more effectively. These platforms leverage AI and the Internet of Things (IoT) to turn property management from a reactive, manual process into a proactive, data-driven one. It's about managing assets, not just buildings.

The focus for 2025 is on predictive maintenance, which uses IoT sensors to monitor critical building systems like HVAC and lighting in real-time. This allows property managers to precisely predict when an asset will fail, letting them schedule maintenance and avoid expensive emergency repairs. This shift significantly lowers operating expenses and improves tenant satisfaction by reducing downtime. Also, PropTech platforms are crucial for meeting growing Environmental, Social, and Governance (ESG) reporting requirements by providing real-time data on energy usage and sustainability metrics.

The goal is to automate administrative tasks, streamline maintenance requests, and use AI to analyze market trends and property performance, ultimately improving the asset value for STAG's investors.

Need for high-speed data infrastructure within properties for modern logistics.

The sheer volume of data generated by modern, automated logistics is staggering, and it requires robust, high-speed connectivity within the warehouse itself. Every AMR, every IoT sensor, and every AI-driven system is constantly transmitting data. You need to support a connected ecosystem.

This means the traditional, basic office-level internet connection is completely inadequate for the warehouse floor. The modern industrial facility needs a scalable architecture that can handle real-time data streams from 5G-enabled IoT devices. Failure to provide this high-speed data backbone creates a bottleneck that limits the effectiveness of a tenant's multi-million dollar automation investment, making the property functionally obsolete for a top-tier logistics user.

Actionable Insight: Ensure CapEx budgets for 2026 prioritize fiber-optic infrastructure upgrades and increased power redundancy in older, non-Class A assets to maintain their competitive edge. The cost of not doing this will be higher tenant churn and lower Cash Rent Change on renewals, which STAG is currently forecasting to be strong at 23.0% - 25.0% for 2025.

STAG Industrial, Inc. (STAG) - PESTLE Analysis: Legal factors

Contractual Risk Related to Single-Tenant Leases and Tenant Bankruptcies

You need to be clear-eyed about the contractual risks inherent in STAG Industrial, Inc.'s core business model. The company primarily operates as a single-tenant industrial real estate investment trust (REIT), meaning a tenant default is not just a partial loss-it's a total loss for that specific property's cash flow. The company's 2025 10-K filing makes this explicit: a default on a single-tenant property is 'likely to result in the complete reduction in the operating cash flows generated by the property.'

The risk is real, but STAG manages it through extreme diversification and tenant quality. As of late 2024, only 26.9% of the portfolio's rentable area was multi-tenant, reinforcing the single-tenant focus. But here's the quick math on mitigation: 59% of STAG's tenants have annual revenues exceeding $1 billion, and 84% have revenues over $100 million. That focus on financially robust tenants is your primary defense against a wave of bankruptcies.

The overall portfolio occupancy remains strong, hitting 95.8% as of September 30, 2025, which is a testament to their risk-managed leasing strategy. Tenant bankruptcy laws (like Chapter 11) still limit a landlord's remedies, often allowing a tenant to reject a lease, but STAG's strategy is to simply lease to companies less likely to file in the first place.

Complex State-Level Landlord-Tenant Laws Governing Lease Disputes and Evictions

Operating a portfolio of 578 properties across 40 states means STAG is not dealing with one set of laws, but forty different, constantly shifting legal landscapes. We are not talking about simple residential evictions; industrial lease disputes involve complex commercial contract law, environmental liability, and state-specific procedural rules for everything from property tax pass-throughs to lease termination. This patchwork makes a centralized, one-size-fits-all legal compliance program impossible.

The complexity translates directly into higher legal and administrative costs. While STAG doesn't publish a state-by-state compliance budget, the sheer volume of jurisdictions requires a significant investment in external counsel and internal legal teams to monitor legislative changes. For instance, a new state law on required notice periods for non-renewal in one state could invalidate a standard lease clause used across the portfolio, forcing a costly, large-scale lease amendment process. It's a defintely a high-volume, low-margin risk.

Evolving Environmental Regulations (e.g., Brownfield Remediation) Increasing Compliance Costs

Environmental liability is a major legal factor, especially with older industrial properties that may have historical contamination, known as brownfields. While remediation costs can be substantial, 2025 legislative activity is actually creating a significant opportunity for industrial REITs like STAG to mitigate these expenses.

The Brownfields Redevelopment Tax Incentive Reauthorization Act of 2025 (H.R. 815), introduced early in the year, is a game-changer. It extends the election to immediately expense (deduct) environmental remediation costs rather than capitalizing and depreciating them over time. This tax incentive applies to costs paid or incurred through December 31, 2028, effectively lowering the net cost of cleaning up a contaminated site.

Furthermore, the federal commitment is strong. The U.S. Environmental Protection Agency (EPA) awarded $267 million in total brownfield grants in fiscal year 2025, the highest allocation in recent program history. This funding, coupled with potential increases in the maximum site cleanup grants to $1,000,000 under the proposed Brownfields Reauthorization Act of 2025, makes redeveloping these sites more financially viable.

ADA (Americans with Disabilities Act) Compliance for Facility Upgrades and Access

ADA compliance poses a continuous legal risk, particularly for older industrial facilities that were built before modern accessibility standards. While the focus is often on retail or office space, industrial facilities must still comply with Title III of the ADA for areas considered 'public accommodations,' which include administrative offices, employee break rooms, and visitor entrances.

The national legal trend is accelerating, not slowing down. ADA lawsuits have seen an increase of 12% in 2025 compared to the same period in 2024, highlighting the growing litigation risk. For an industrial REIT, the key risks are physical accessibility barriers, such as non-compliant ramps, parking spaces, and restrooms in the office portions of their warehouses. Fines for non-compliance can reach tens of thousands of dollars per violation, not including legal fees and the cost of mandated physical remediation.

The following table summarizes the key legal risks and the associated financial or operational impact for STAG Industrial, Inc. in 2025.

STAG Industrial, Inc. (STAG) - PESTLE Analysis: Environmental factors

Growing pressure from institutional investors for Green Building certifications (e.g., LEED)

Institutional investors are defintely pushing for verifiable environmental performance, and that pressure directly impacts STAG Industrial, Inc.'s cost of capital and portfolio valuation. We're seeing this play out in two ways: new development strategy and financial incentives. STAG is strategically building new assets to meet the U.S. Green Building Council's Leadership in Energy & Environmental Design (LEED) standards when feasible, which is a smart move for long-term asset value.

For example, STAG is pursuing LEED Silver certification for two new industrial distribution warehouse facilities in Gibsonton, Florida, with that certification anticipated in 2025. This isn't just about a plaque; it's about future-proofing the portfolio. Also, the company's continuous improvement in its Global Real Estate Sustainability Benchmark (GRESB) performance-maintaining a Public Disclosure Score of 'A' in 2024-triggered a two basis point interest rate reduction on certain unsecured borrowings. Here's the quick math: lower interest expense means a lower weighted average cost of capital, which drives higher net asset value (NAV) for the portfolio. That's a direct financial return from an environmental commitment.

Increased tenant demand for solar-ready roofs and energy-efficient building systems

Tenant demand for energy efficiency is no longer a fringe request; it's a core requirement for sophisticated logistics and e-commerce operators. They need to manage their own Scope 3 emissions (emissions from assets not owned or controlled by them) and lower operating costs, so they look for buildings that help them do that. STAG is responding by making significant investments in building systems and solar capacity.

As of year-end 2024, 57% of STAG's portfolio, which spans approximately 116.6 million rentable square feet, featured LED lighting, following the conversion of 3.75 million square feet in 2024 alone. This focus on high-efficiency lighting directly reduces energy consumption. Plus, the commitment to renewable energy is clear: STAG's projected cumulative solar capacity is expected to reach 40.5MW by year-end 2025. This capacity is often deployed through community solar projects, which not only generate revenue (roof rent) but also provide local residents and businesses with discounted, low-cost renewable energy.

• Solar Capacity Target (2025): 40.5MW cumulative projected capacity.
• LED Coverage (2024): 57% of portfolio square footage.
• Tenant Engagement: Green lease language covers 13% of the portfolio, facilitating data sharing for energy and emissions tracking.

Climate change risk assessment for properties in coastal or flood-prone areas

As a seasoned analyst, I focus on risk-adjusted returns, and physical climate risk is a material factor for a portfolio spread across 41 states. You can't ignore the increasing frequency of extreme weather events. STAG acknowledges the value of understanding the climate-related risks facing its portfolio and business, especially in coastal or flood-prone areas. They've taken a crucial step by formally aligning their reporting with the Task Force for Climate-Related Financial Disclosures (TCFD).

More concretely, STAG engaged MSCI ESG Research to perform asset-level risk assessments via their Climate-Value-at-Risk platform. This analysis assesses both physical risks (like flooding and extreme heat) and transition risks (like policy changes) across a range of global warming scenarios, from 1 to 5 degrees Celsius. This process moves risk management from abstract concern to a data-driven capital planning exercise. They use this information to inform property management best practices, such as communicating updates for upcoming storm events to tenants.

Corporate ESG (Environmental, Social, and Governance) reporting mandates influencing tenant choice

The push for corporate ESG reporting is a major tailwind for industrial landlords who can offer compliant, efficient space. Large, publicly traded tenants-especially those with their own net-zero or decarbonization goals-are increasingly selecting buildings that help them meet their targets. STAG's triple-net lease structure means tenants control most operational environmental metrics, making tenant engagement vital. STAG is addressing this with specialized lease language and data collection efforts.

STAG was reconfirmed as a Gold Green Lease Leader in 2023 by the U.S. Department of Energy and the Institute for Market Transformation. This designation highlights their best practices in scaling their green lease program, which now covers 13% of the portfolio and is being scaled for all new leases. This language facilitates the sharing of utility data, which is essential for measuring Scope 3 greenhouse gas (GHG) emissions, the primary source of emissions for a triple-net landlord like STAG. They are actively working to increase real data coverage, which stood at approximately 18% of their 116.6 million square foot portfolio in 2024.

So, the next step is clear: Finance: draft a sensitivity analysis on the impact of a 100 basis point rise in the 10-year Treasury on STAG's weighted average cost of capital by next Friday.