Logistics markets around the world continue to demonstrate improving fundamentals. Led by the U.S., global net absorption during 2013 reached roughly 350 million square feet,1 the highest level since the beginning of the global financial crisis, and activity remains healthy this year. Such improvement, which exceeded our own initial expectations, suggests the need for a closer look at the drivers of growth. Many customer segments are expanding, making for a diverse expansion. Notably, consumer-facing customers grew along with improvements in the housing- and auto-related industries.
E-commerce clearly played a role as well across industries. Favorable demand trends and the declining availability of modern logistics facilities in the key markets around the world should push rents past their 2001 prior peak.
Source : Prologis