Rexford's Board Shake-Up: A Real Estate Signal for Pharma Supply Chains

LOS ANGELES, CA – November 25, 2025

The pharmaceutical value chain does not exist in a vacuum. It runs on a physical network of laboratories, manufacturing plants, and, most critically, millions of square feet of sophisticated industrial real estate. For any life sciences company relying on the logistics and distribution arteries of Southern California—the nation's largest industrial market—the strategic maneuvers of the region's dominant landlords are as impactful as any regulatory change.

In this context, the recent announcement from Rexford Industrial Realty, Inc. (NYSE: REXR) is far more than a routine corporate update. The appointment of seasoned real estate executive David Stockert to its Board of Directors, effective January 1, 2026, is a powerful indicator of the increasing financial sophistication in the industrial sector and a harbinger of change for the tenants who power its growth, including the pharmaceutical industry.

A Master of Capital and Cycles Joins the Board

David Stockert is not a typical board appointee. His career is a masterclass in public REIT leadership and strategic capital allocation. He is widely recognized for his 15-year tenure as CEO and President of Post Properties, where he steered the multifamily REIT through significant growth before orchestrating its $15 billion merger with Mid-America Apartment Communities (MAA) in 2016.

However, it is his deep-seated experience in the industrial sector that makes this appointment particularly noteworthy. Stockert was a key financial leader at Weeks Corporation and later Duke Realty Corporation during a period of intense M&A activity in the late 1990s. More recently, he served as lead independent director at Duke Realty as it transformed into a pure-play industrial powerhouse, culminating in its acquisition by Prologis in 2022. He understands the industrial real estate playbook from the inside out.

Rexford Industrial's Chairman, Tyler Rose, explicitly highlighted this background, noting that Stockert's "experience in industrial real estate, leadership of high-performing public companies and understanding of capital allocation through cycles make him an outstanding addition." The goal, Rose stated, is to "drive performance and deliver superior returns for investors." For pharma tenants, this translates to a landlord doubling down on maximizing asset value in a market that is central to their operations.

Navigating the Southern California Crossroads

Stockert joins Rexford at a pivotal moment for the Southern California industrial market. After a historic, pandemic-fueled run of near-zero vacancies and skyrocketing rents, the market is finally showing signs of normalization. Vacancy rates in Los Angeles County have climbed to a decade-high of nearly 5%, while the once-unstoppable Inland Empire has seen vacancy jump to over 7% in early 2025. Asking rents, though still nearly 50% above pre-pandemic levels, have seen several consecutive quarters of decline.

On the surface, this cooling trend offers a welcome reprieve for tenants who have been squeezed by relentless cost increases. The negotiating power is beginning to shift, and landlords are offering more concessions. However, this is not a market collapse; it is a market rebalancing. Long-term demand drivers, including activity at the Ports of Los Angeles and Long Beach and the unceasing growth of e-commerce and third-party logistics (3PLs), provide a strong floor under the market.

For pharmaceutical and life sciences companies, this environment presents both an opportunity and a threat. The current softness creates a strategic window to secure or expand a logistics footprint on more favorable terms than have been available for years. Yet, the underlying strength of the market means this window may be brief. Landlords like Rexford are not panicking; they are reloading for the next cycle.

What a Disciplined Landlord Means for Pharma Tenants

Stockert’s appointment is the capstone on a broader strategic pivot at Rexford. The company has recently rolled out a “reformed capital allocation framework” designed to maximize risk-adjusted returns and per-share value. This includes a programmatic disposition strategy to sell off underperforming assets and reinvest the capital into higher-yielding opportunities, including share repurchases. The company is also reducing its exposure to speculative ground-up development and has implemented significant cost-reduction initiatives.

Bringing a disciplined capital allocator like Stockert onto the board is a clear move to ensure this new strategy is executed with precision. His track record at Duke Realty, where he helped oversee its successful repositioning, provides a blueprint for what tenants can expect. A landlord laser-focused on optimizing its portfolio will have several direct impacts:

• A Flight to Higher-Value Use: Rexford will likely accelerate the redevelopment of its older, well-located properties. This could be a boon for the life sciences sector if conversions to lab or specialized manufacturing space meet Rexford’s stringent new return thresholds. Conversely, it could also mean displacement for traditional distribution tenants as their spaces are repurposed for higher-paying users.

• Data-Driven Negotiations: The era of relationship-based leasing is being superseded by rigorous, data-driven asset management. With an expert in value creation on the board, tenants should anticipate that every negotiation—from renewals to new leases—will be benchmarked against a sophisticated analysis of market potential and risk-adjusted return.

• Partnership and Performance: While negotiations may become tougher, a more sophisticated landlord can also be a more strategic partner. Large, stable tenants with strong credit, such as major pharmaceutical distributors, may find Rexford more willing to collaborate on long-term, custom solutions that provide predictable cash flow and enhance portfolio quality.

Ultimately, David Stockert's arrival at Rexford Industrial is more than an internal governance matter. It signals the maturation of the industrial real estate sector into a highly strategic, financially engineered asset class. For pharmaceutical leaders, who rely on the seamless functioning of properties in hubs like Southern California, this development demands a corresponding increase in the sophistication of their own real estate strategies. Understanding the capital allocation decisions being made in the boardrooms of their landlords is no longer an ancillary concern—it is an essential component of managing supply chain risk and securing a competitive advantage in a dynamic market.