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Prologis report indicates broad diversity of demand for industrial real estate

Demand for industrial real estate continues to be diverse, with many industries expanding, according to a research paper from Prologis.

The paper, “The Growth of Logistics Real Estate: An Analysis of Demand by Leading Customer Industries”, focuses on three areas:
•             Consumer-facing customers, the largest industry concentration within logistics, comprised the largest share of leasing activity last year;

•             Several sectors experienced strong growth, including electronics, housing, auto, and e-commerce; and 

•             The paper highlights third party logistics (3PL) providers, who will be a source of growth going forward.
“The outlook for the growth of customer businesses and logistics demand is strong,” says Chris Caton, vice president and head, Prologis Research. “In fact, decision-making surrounding new leases clearly improved in the past year. Customers are increasingly recognising the opportunity to lock in current rates ahead of further rate increases given today’s low vacancy rates, modest supply pipelines, and upward trend in replacement costs.”

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