In Seven Supply Chain Predictions for 2024, the logistics development powerhouse makes some appropriately large-scale forecasts. And how did Prologis’s forecasts for 2023 fare? A bit mixed, but more right than wrong.
The sustained e-commerce surge continues to drive a considerable threefold demand for logistics space, requiring both expansive facilities and smaller, localized centers to facilitate speedy last-mile deliveries.
Rising development costs, whether from high land prices or increased construction costs, has led investors to shift away from evaluating sites based on historical lease prices and instead betting on the potential for rent growth that could be spurred by a lack of supply.
Even though the industrial sector in many parts of the country is one of the healthier components of the CRE ecosystem, some fear signs of softening. Developers in Miami-Dade, however, appear to have no such concerns.
The first quarter findings show the South Florida industrial market remains on a stable trajectory, as demand continues to outpace supply. Companies keep wanting to take industrial space. Population growth and other factors all seem to be pointing in a positive direction.