Chris Caton, Senior Vice President, Research, Prologis

https://www.prologis.com
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Chris Caton

The major trade gateways and consumption centers that matter most to our customers tend to change slowly, if at all. What has changed quickly, however, is our customers’ approach to moving goods through their supply chains, as consumers expect faster service.

This shift is primarily driven by e-commerce, a persistently strong structural driver of logistics real estate demand. For retailers looking to outpace the competition, logistics real estate has become a business-critical decision that favors high-quality space in the best locations near urban centers. As a result, we see continued strong demand in 2018 for distribution facilities at the national, regional, and local levels.

Given this trend, and the strength of the current cycle as indicated by historically low vacancy, those customers who have the ability to plan ahead stand the best chance of securing the real estate they need.