PLD · Earnings call · 2026Q3T · Full report

Development Pipeline

Prologis, Inc. · 2026-10-15 · Importance 79 · Surprise 66 · In source text

Prologis started $1 billion of development in the third quarter, bringing year-to-date starts to nearly $5 billion, and controls sites capable of supporting the next $40 billion of logistics development. The fourth-quarter pipeline is expected to be weighted toward build-to-suit projects, with management describing the build-to-suit pipeline as roughly 20% to 25% larger than a year ago. Approximately 80% of third-quarter starts were speculative, but management expects build-to-suits to represent 55% to 65% of full-year starts. Higher construction costs, financing costs and return requirements are making speculative projects harder to underwrite, while Prologis’s land basis and scale support continued selective development.

Key facts

• Prologis owns or controls sites to develop the next $40 billion of logistics development.
• Prologis increased development starts guidance on an owned and managed basis to a range of $6 billion to $6.75 billion.
• Prologis stated its build-to-suit pipeline is about 20% to 25% larger than it was at this time last year.
• Prologis started $1 billion of development in the third quarter, bringing year-to-date starts to nearly $5 billion.
• Prologis expects build-to-suits to represent between 55% and 65% of the year's starts.
• Prologis said last quarter was one of the lowest start quarters in over a decade.
• Prologis said 80% of its starts in the year-to-date quarter were spec starts.

Impact estimates