A Look Ahead: Four Influential Factors Shaping the Logistics Real Estate Cycle

According to Prologis, the logistics real estate industry is experiencing several key trends. Increasing demand is being fueled by economic shifts and the expanding e-commerce sector. Supply growth is steady due to institutionalized developers and regulatory barriers, ensuring supply discipline. The retail sector is focusing on enhancing services and growing its e-commerce presence. Additionally, supply chain resilience and decreased new building deliveries in 2024 are expected to drive positive demand and reduce vacancies, with elevated replacement costs affecting the market’s dynamics.

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