While many companies are in a holding pattern, this is creating a buildup of latent demand that may rapidly reshape the market once conditions stabilize.
The world’s largest industrial developer and landlord announced a spike in warehouse leasing activity following the U.S. November election, which has improved the company’s outlook for warehouse demand in 2025.
Prologis acknowledges that while operating conditions are healthy in the majority of their markets, customers are remaining focused on controlling costs, which is weighing on decision making and the pace of leasing. High interest rates and mounting geopolitical concerns are also factors that are contributing to this hesitancy but the effect of this indecision on net absorption is expected to be short-term.