Prologis: COVID-19 Could Drive 400M SF of New Supply Chain Logistics Demand
May 21, 2020 | Connect California Commercial Real Estate News
The latest research by San Francisco-based Prologis on COVID-19 and its implications for logistics real estate breaks down what may be ahead for the sector. The report provides insights into the third phase of the global pandemic, defined as “the normal,” including quantifying the potential increase in long-term demand from higher inventory levels and accelerated e-commerce adoption.
The report’s authors say, “We expect that lessons learned from the pandemic will add demand tailwinds to logistics real estate in the “new normal.” Growth in direct-to-consumer delivery volumes and rapid replenishment needs should continue to emphasize the appeal of logistics real estate that is closer to end consumers.”
Among the findings are that accelerated e-commerce adoption and higher inventory levels have the potential to generate 400 million square feet or more of additional U.S. logistics real estate demand, or 150 to 200 million square feet per year for two to three years.
