Prologis: Logistics Leasing Up 6% Globally

In 2023, the logistics property sector enjoyed a robust 6% growth in global rents. This uptick, reported by Prologis, indicates a strong sector despite a rough economic climate.

Here are some focal points:

• Latin America: Mexico leads with a 19% rent increase due to "ultra-low vacancy, rapidly rising replacement costs, and nearshoring."
• Demand vs. Supply: With vacancy rates diving from 7% to near 1% in key Mexican markets since 2021, rent hikes have been both a response to and a catalyst for change in the industry.
• U.S. and Canada: Rents grew by 6% in 2023 after rising a monumental 30% in 2022. Top regions include the Southeast and Southwest, favoring markets like Las Vegas and Central Florida.

Source: Logistics Management | Prologis