Prologis Research has issued an updated industrial outlook for 2022 that increases its industrial rent-growth forecast for this year to 22%.
Prologis said unprecedented "pent-up" demand for warehouse space due to e-commerce growth and inventory restocking will continue to outpace supply and new construction, holding industrial vacancy rates in 2022 at a record-low 3.3%.
Prologis said it modeled a 5% slump in sales of goods into its forecast—as well as the impact of Amazon's recent revelation it has too much warehouse space—and still concluded that the industrial market needs 800M SF of new space to cure the current shortage and allow retailers to bring inventories back up to pre-pandemic levels.
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