Prologis Research has released a special report, Seven Bold Predictions for 2025: Supply Chain Trends to Watch, which identifies the major areas to keep an eye on during the coming year.
1. Bulk space will rebalance first: Vacancy rates will fall the fastest forthe largest buildings in U.S. and Europe. A combination of increasing demand and limited new supply will push vacancy rates down by 100 bps or more for buildings 500,000 square feet or larger.
2. Freight will fly: Air cargo volume will surge by double digits, fueled by growing international e-commerce beyond China and the U.S.
3. South America’s turn to take the stage: Brazil’s logistics real estate rent growth will surpass the global average by more than 500 bps as vacancy rates fall to never-before-seen mid-single digits.
4. All quiet on the construction front: Groundbreakings of logistics real estate buildings will decrease further in 2025, remaining 15% below normal globally.
5. California’s domino effect: New legislation will seek to limit new supply in key locations. Following the passage of State Bill AB98 in California, we expect other states to propose similar measures in 2025.
6. Better together: Freight industry consolidation will accelerate. M&A activity will intensify and drive technology investment and the next wave of expansion.
7.
What global trade slowdown? U.S. imports will grow faster than GDP
despite new tariffs and the East Coast will take a larger share post
International Longshoreman Association (ILA) contract ratification.
To view the details of the report, please visit at: https://irei.com/wp-content/uploads/2024/12/Research-Outlook-Paper-12-2024.pdf
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