PLD · Earnings call · 2026Q3T · Full report

Geographic Market Commentary

Prologis, Inc. · 2026-10-15 · Importance 15 · Surprise 14

U.S. demand is broadening geographically, with Houston, Dallas and Atlanta leading, while Southern California, Northern New Jersey and the San Francisco Bay Area are improving. The San Francisco Bay Area combines high occupancy with strong rent growth, and Southern California’s recovery is being led by healthy Inland Empire demand and a Class A aerospace-led renaissance in the South Bay. In Europe, vacancy remained low at 5.3%, with the Netherlands, U.K., Spain and Italy among the stronger markets for rents and deployment opportunities. Brazil led Latin America, Mexico was normalizing while still benefiting from elevated lease mark-to-market, and Japan saw rising rents supported by lower vacancy.

Key facts

• Following completion of the SEGRO combination, Prologis will have a 368 million square foot operating portfolio in Europe.
• Prologis said Southern California market occupancy has risen to 93.5% and Prologis' portfolio there is nearly 97% occupied.
• Prologis reported Europe market vacancy has remained low at 5.3%.