The 7.3% year-over-year increase is good news for landlords that have been coping with a supply surge, but the overall industrial market is still down from its record highs in 2022.
Artificial intelligence is expected to drive demand for data centers and is giving the world’s largest industrial property company tremendous confidence in future growth. Every time a warehouse is converted to a data center, Prologis pick up $500 a foot of value.
A new report by Colliers says the industrial market will, in short, remain in landlord’s territory, Prologis agrees by recently saying the competition for industrial space will increase in 2024.