PLD · News · 20261016N

Market Demand Trends

Prologis, Inc. · 2026-10-16 · Importance 20 · Surprise 24

Prologis cited improving logistics demand, with U.S. industrial net absorption reaching 63 million square feet in the third quarter. Market vacancy declined to 7.1%, while rents increased 50 basis points for the third consecutive quarter. Average portfolio occupancy improved to 95.1%, supported by strong leasing activity. Rising construction and financing costs have pushed rents required to justify new development 27% above prevailing market levels, restraining new supply and supporting rent growth.

Key facts

• CEO Dan Letter: rents needed to justify new development are 27% above prevailing market levels. source
• Rents rose 50 basis points, their third consecutive quarterly increase. source
• U.S. industrial net absorption: 63 million square feet (reported by CFO Timothy Arndt). source