Prologis released their supply chain predictions for 2023, they include trends in e-commerce, growth markets, green building, and more.
Prediction #1
U.S. warehouse development starts will drop to a seven-year low, even as rent growth exceeds 10%.
Prediction #2
California’s barriers to development will permanently constrain logistics demand, allowing Texas to become the #1 state for net absorption.
Prediction #3
Mexico demand will hit a new annual record as nearshoring drives expansion along the border.
Prediction #4
India will rise from fourth to the third-most-active country for development starts, behind the U.S. and China.
Prediction #5
Build-to-suit rents will reach new levels in the U.S. and EU as market rents are capitalized at 5%, despite falling land and construction costs.
Prediction #6
E-commerce leasing will bounce back to become the second-most-active year on record (after 2021).
Prediction #7
Demand for sustainable warehouses will grow rapidly. Installed rooftop solar capacity will double, and EV truck charging capacity will exceed 10 megawatts.
