Prologis Research monitors, analyzes and reports on key trends and dynamics in both real estate and supply-chain management, giving customers the benefit of insight from global and large-scale perspective.
The company’s dedicated team conducts its own primary research, drawing from industry data and consulting a network of affiliated academics and other professionals. Papers, studies and reports produced prior to the merger of AMB Property Corporation and ProLogis in June 2011 represent the expertise and perspective of both legacy companies.
Prologis Research details the trends affecting commercial real estate development in the U.S. Development activity is rising, but more slowly than during past cycles. Building on an improved macroeconomic climate, the recovery of occupancies and rents has invited development across all sectors, not just industrial. Yet, this cyclical upturn obscures important structural shifts. These shifts revolve around the mindset of greater discipline.
Logistics real estate market conditions are supported by robust customer activity and elevated utilization of space, as evidenced by the U.S. Industrial Business Indicator™ (IBI), Prologis’ proprietary index of customer activity. The index was in the growth range through October 2015, for the 37th consecutive month. Based on positive demand sentiment, Prologis expects net absorption of 240 million square feet in 2015, with projected deliveries of 160 million square feet. This imbalance between demand and supply should push the vacancy rate down to 5.8% by year-end, leading to a shortage of desirable space in most markets and giving landlords the leverage to further raise rents.
As e-commerce grows and evolves, so too will the supply chains, facilities and talent that support the critical functions of e-fulfilment. E-fufilment is essential to meeting consumer expectations, staying competitive and generating profit.
Trade patterns have become increasingly sophisticated in the last 20 years, driven by shifts in where goods are produced and consumed. These evolving patterns, along with advances in technology and e-commerce, have reinforced the value proposition of core market locations and have rendered certain building types and locations less desirable or, even, obsolete.
Customer activity in logistics real estate continues to rise, with more corners of the industry characterized by greater competition for dwindling space. Prologis’ proprietary index of customer activity levels, the U.S. Industrial Business Indicator™ (IBI), posted another elevated reading in July, marking the 34th consecutive month of activity in the growth range.
Broadening U.S. Expansion — Despite apparent crosscurrents in the economy, the U.S. logistics real estate expansion continues, benefiting from a greater scope of demand by size category, geography and customer industry.
The industrial real estate landscape is changing as technology advances and consumers demand faster delivery of goods.These trends have a profound impact on demand, as several percent of industrial real estate is rendered obsolete in the U.S. every year; that percentage is even higher in Japan and Europe.
Prologis’ U.S. Industrial Business Indicator™ (IBI), the company’s proprietary survey of customer activity and facility utilization, confirms momentum in the logistics market.
Prologis Research documents the strength of the U.S. industrial real estate expansion.
Prologis Research reveals that the logistics market is entering a new phase of acceleration, pushing vacancy to near-15-year lows.
This white paper examines the effect e-commerce is having on how retail and logistics industries operate.
Continuing expansion: Prologis Research reaffirms its forecast for net absorption of 225 million square feet in 2014.
An analysis of demand by leading customer industries: Prologis Research studied demand growth across customer segments around the world.
Prologis Industrial Business Indicator shows continuing expansion: Prologis Research forecasts 2014 net absorption of 225 million square feet.
Logistics real estate market conditions are supported by robust customer activity and elevated utilization of space, as evidenced by the U.S. Industrial Business Indicator™ (IBI), Prologis’ proprietary index of customer activity.