PLD · Earnings call · 2026Q3T · Full report

Market Demand Trends

Prologis, Inc. · 2026-10-15 · Importance 39 · Surprise 40

Management remains constructive on logistics demand despite the higher-rate environment, citing customer efficiency, e-commerce, advanced manufacturing and data-center supply-chain expansion. U.S. net absorption was described as consistent with a normalized annual range of 230 million to 240 million square feet, while market vacancy declined to 7.1% and market rents rose for a third consecutive quarter. Customers supporting the data-center buildout represented approximately 10% of global new leasing and 17% in the U.S. during the quarter, with management estimating more than 150 million square feet of related demand through the end of the decade. Europe maintained 5.3% vacancy and 70 basis points of quarterly rent growth, while Brazil led Latin America and Japan experienced rent growth amid higher rates and inflation.

Key facts