Companies in search of logistics space would be well advised to act soon, even though a significant amount of new space was added to the market in Q3 2023 from projects begun in 2022 and the national vacancy rate rose.
That's the advice of Prologis in a new report. It predicts that the logistics space now available won't last long and rents will rise significantly as construction declines.
Its Industrial Business Indicator (IBI) measure for Q3 showed continuing consumer demand and growth in the flow of goods, pushing up warehouse space needs. Yet even though market vacancies rose to 4.8% in the period, that was low compared to the historical average increase of 6.1%. "Logistics real estate dynamics remain tight in most markets," it reported.
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