What's Happening?
Prologis, a leading logistics real estate company, projects a rise in warehouse utilization due to growing demand from e-commerce and manufacturing sectors. As online sales approach 20% of total retail
worldwide, e-commerce companies are expected to account for a significant portion of new leasing activities. This trend is driven by the need for efficient logistics solutions to support cross-border fulfillment and regional diversification strategies. Prologis notes that the tightening trucking capacity and rising transport costs are further increasing the value of strategically located logistics real estate, which can reduce delivery distances and transit times.
Why It's Important?
The anticipated increase in warehouse utilization is important as it reflects the evolving dynamics of the logistics and supply chain industry. With e-commerce companies expanding their operations, there is a growing need for well-located warehouses that can facilitate efficient distribution and fulfillment processes. This trend underscores the critical role of logistics real estate in supporting the growth of e-commerce and manufacturing sectors. As companies refine their strategies to minimize duties and streamline deliveries, the demand for logistics space is likely to continue rising, potentially leading to increased investment in warehouse infrastructure and technology.
