A brand new record issued this week via San Francisco-based actual property funding accept as true with corporate Prologis may well be seen as a two-part tale, in describing the trail international logistics rents took in 2025.
The record, entitled “2025: Pause Shifts to Development as Rents Manner Inflection,” defined that whilst 2025 delivered new shocks to international provide chains, logistics operators tailored via that specialize in long-term provide chain wishes, which was once mirrored via rents. It famous that over the primary part of 2025, rents fell 2.3%, with consumers pausing leasing decision-making, watching for readability round financial stipulations and business coverage.
However Prologis stated that development began to modify within the 3rd quarter, with long-term making plans reemerging and consumers going forward with leasing choices amid the continued volatility, as evidenced via hire declines heading down to at least one.4% over the second one part of 2025—marking a important transition duration for occupiers, operators, traders, and builders, with 2026 making plans accelerating.
“3 elements blended to force file leasing task in 2025 concentrated within the latter a part of the 12 months,” stated Melinda McLaughlin, Head of International Analysis at Prologis. “First, consumers persevered to develop thru 2025 as each shoppers and companies persevered to spend and make investments. 2d, structural forces in provide chains, corresponding to rising e-commerce, new trade traces and modernizing operations, required adaptions and expansion in logistics actual property footprints. In the end, the mix of each a) time to procedure implications from fast shifts in business coverage and b) a narrower vary of attainable tariff results coming to gentle greater self belief in decision-making. Taken in combination, consumers started to appear in the course of the noise in the second one part of the 12 months and make the community investments their companies require for the long run.”
The record made the case that international call for has reached an inflection level, with web absorption rising to 434 million square-feet (SF) on a seasonally-adjusted foundation in the second one part of 2025, topping the 213 million SF recorded over the primary part of the 12 months.
When requested how that might have an effect on marketplace stipulations early into 2026, McLaughlin famous that as of the fourth quarter 2025, web absorption exceeded new provide, reinforcing Prologis’s view that emptiness charges are at or close to top ranges.
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