PLD · Earnings call · 2026Q3T · Full report

Interest Rate Outlook

Prologis, Inc. · 2026-10-15 · Importance 39 · Surprise 24

Management said the recent increase in interest rates is expected to slow transaction activity and place pressure on property values. Higher financing costs and return requirements are making new logistics development harder to underwrite, while replacement-cost rents are now 27% above current market rents. Prologis expects transaction volumes to moderate as buyers and sellers recalibrate, although management believes scarce, high-quality assets with inflation-plus-growth characteristics will continue attracting global capital. Approximately 95% of debt is fixed rate, with about eight years of average life remaining, limiting near-term refinancing exposure.