PROLOGIS Insights on the 2023 Supply Chain

Prologis warehouse in France

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.

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