Prologis has introduced a new metric it says more accurately measures "true" months of supply of industrial space by comparing vacancies in existing facilities—plus unleased space in the pipeline—to trailing net absorption.
Based on this new metric, which Prologis is calling True Months of Supply (TMS), Prologis reported this week that the US industrial market currently has a record-low 16-month supply based on data from the 30 US markets Prologis tracks.
Prior to 2021, the months of supply metric had never dipped below 32 months. A measure of less than 50 months is a strong indicator of rent growth throughout the market.
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