Prologis Says ‘Frenzied Pace’ in Logistics to Normalize in 2023
November 7, 2022 | Paul Bergeron | GlobeSt.com
The “frenzied” tempo of logistics leasing momentum of recent years is forecast to “normalize,” according to Prologis’ quarterly Industrial Business Indicator (IBI) and True Months Supply (TMS) research report issued last week.
Prologis said the pace of decision-making has already slowed “and is not expected to reaccelerate due to greater economic uncertainty.”
The firm added that users will have more options as the construction pipeline empties.
Compared with 2022, Prologis “expects more deliveries and slightly lower net absorption, roughly in line with the annual demand run rate at the current level of IBI activity.”
Market rent growth is expected to outpace inflation, TMS is expected to rise and the vacancy rate is expected to expand.
“Taken together, competition may ease in some places, but planning will be pivotal in key locations where options should continue to be limited.”
