2020 Prologis Logistics Rent Index
Introduced in 2015, the annual Prologis Logistics Rent Index examines trends in net effect market rental growth in key logistics markets across North America, Europe, Asia and Latin America.
The company’s proprietary methodology focuses on taking rents, net of concessions, for logistics facilities.
Key takeaways from the new paper include the following:
- Titled “Resilience Tested,” the index notes that global rent growth improved through year-end 2020 despite a mid-year dip due to the pandemic.
- Structural demand drivers included an acceleration of e-commerce, reassessments of inventory levels and a greater need for speed to market.
- Globally, uncertainty around the pandemic led to negative growth in most markets in the second quarter of 2020, with the exception of Japan and Brazil, which recorded stable or positive growth throughout the year.
- Most markets recovered quickly as concessions given initially to secure occupancies were reversed; vacancies remained low and demand stayed healthy.
- Growth in 2020 was most pronounced in the back half of the year.
- Overall, the strength of logistics fundamentals was tested and proven in 2020.
- Prologis Research anticipates continued growth across Prologis markets globally.
- Expansion is expected to be the most-pronounced in infill locations where expanding e-fulfillment should result in competition by logistics users for the best locations.
