All props to Prologis. If anyone knows industrial, logistics, and supply chain real estate markets, they do. And they have a number of 2024 "bold predictions" for supply chain, two of which being financial. Bullish and bold are fine, but best when paired with proper risk management (which one suspects that Prologis regularly applies to their business decisions).

One of the two financial predictions is that interest rates declines will double private equity real estate funding. They base this on three factors. One is an assumption that the Fed is underestimating the decline of inflation.

"Our projections take the bull case on interest rate cuts," they wrote. "While the latest Federal Open Market Committee member projections from December show a median federal funds rate in 2024 in the mid-4% range, lower than 2023's mid-5% range, we expect inflation to slow more quickly than anticipated." Could be. Or it could be that inflation will take its sweet time to recede. Correctly calling this factor has stymied many experts and market watchers.