Growth will be the watchword for most logistics markets in 2021 fueled by trends in supply and demand fundamentals. 

A recent Prologis report predicts strong rent growth across both the US and global logistics markets this year, thanks to a "wall of capital" that flocked to the sector amid the global pandemic. There are risks, of course: the pandemic still isn't over, and geopolitical headwinds continue to shift. The logistics sector has been a resilient, relatively safe harbor for investment over the past year, leading to potential areas of oversupply—but Prologis predicts structural demand hurdles and increasing replacement costs will mean new supply isn't likely to meet demand in most areas, at least not this year.

The firm also predicts pricing power will strengthen in 2021, thanks to that rising supply-demand imbalance. There's increased competition for a limited number of developable parcels across many US markets that's only expected to intensify, particularly in infill areas. Demand will be particularly strong in urban fulfillment locations near end consumers, thanks to the acceleration of trends like e-commerce and inventory building.