PLD · News · 20261016N

Interest Rate Outlook

Prologis, Inc. · 2026-10-16 · Importance 47 · Surprise 48

Prologis said higher interest rates are threatening property transactions and valuations. Rising construction and financing costs have pushed rents required to justify new development 27% above prevailing market levels. Management expects higher return thresholds to restrain new supply, which could support rental growth, while analysts continue to question the resilience of operating gains in tougher capital markets.