๐ฃ ๐๐จ๐ ๐ข๐ฌ๐ญ๐ข๐๐ฌ ๐๐๐๐ฅ ๐๐ฌ๐ญ๐๐ญ๐ ๐๐๐ง๐ญ๐ฌ ๐๐๐ค๐ ๐ ๐๐ข๐ฉ - ๐๐ข๐ฆ๐ ๐ญ๐จ ๐๐จ๐ฏ๐ ๐ญ๐จ ๐ ๐๐๐ฐ ๐๐๐ซ๐๐ก๐จ๐ฎ๐ฌ๐ ๐ ๐๐๐ข๐ฅ๐ข๐ญ๐ฒ ๐๐ข๐ญ๐ก ๐๐๐ญ๐ญ๐๐ซ ๐๐๐ญ๐๐ฌ ๐๐๐๐จ๐ซ๐ ๐๐ญ'๐ฌ ๐๐จ๐จ ๐๐๐ญ๐!๐
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According to the Prologis Logistics Rent Index, logistics real estate rents in the US and Canada experienced a 7% decline last year. Southern California was a major contributor to this drop, with rents falling over 20% after a surge in demand from 2020 to 2022. Excess supply in markets like Dallas and Phoenix also played a role.
Despite the decline, rents are still 59% higher than five years ago, so businesses renewing leases in 2025 may still face significant increases. However, demand is expected to heat up again this year, driven by economic growth, trade shifts, and the need for bulk space.
Third-party logistics providers (3PLs) are expected to be a major driver of demand, as retailers and wholesalers outsource distribution operations for flexibility and cost savings. This trend is likely to continue in 2025, with 3PLs accounting for a significant portion of industrial leasing activity.
What are your thoughts on this trend? Have you experienced similar shifts in your industry? Let's discuss! #LogisticsRealEstate #SupplyChain #IndustrialLeasing