Many thought tariffs and a slowing economy would finally catch up to the logistics real estate market. Higher costs and softening consumer demand seemed like a bad mix for warehouses that depend on global trade. But Prologis is proving that narrative wrong. The world’s largest industrial landlord reported $2.21 billion in revenue for the third quarter, a 9 percent increase from last year, and signed leases for an impressive 62 million square feet of space. That kind of growth shows that even after years of development, demand for well-located logistics space is still strong.Prologis CEO Hamid Moghadam said the market is “nearing an inflection point for rent and occupancy growth,” as importers and tenants lock in space ahead of what could be another busy shipping season. That confidence comes at a time when new construction has started to slow. Even after waves of development over the past few years, we’re seeing absorption hold steady. Cushman & Wakefield reported that new industrial completions were down roughly 40 percent year over year in the first quarter of 2025. Fewer new buildings means that existing space, especially newer and more efficient ones, are becoming more valuable...
RSK: The warehouse sector is still going strong despite tariff concerns. Logistics is just too important to stifle.
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- - Volume: 25 - WEEK: 43 Date: 10/21/2025 9:22:28 AM -