Prologis: Logistics Leasing Up 6% Globally

Logistics property rents rose by 6% globally in 2023, with a significant 19% increase in Mexico, driven by nearshoring and demand.

Prologis: Logistics Leasing Up 6% Globally
Image Source: Prologis

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.

Image Source: Prologis

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.
Image Source: Prologis

Source: Logistics Management | Prologis

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