Logistics Real Estate

The third quarter IBI Activity Index reading came in at 53, with the inflection period coming from net absorption, new lease signings, and the proposal pipeline each at healthier levels in the third quarter compared to the 2024 average. And it added that the IBI reading showed a decline, as “supply chain activity peaked early in 2025 due to trade volatility,” adding that the recovery is nonlinear, paced by large and e-commerce companies pacing growth that is expected to be followed by other...

A key thesis in the report was focused on how the pairing of strong leasing and a decline in new construction held the overall quarterly vacancy rate at 6.6%, which the firm said reversed a stretch of quarterly losses that had been intact going back to the second quarter of 2022.

At Prologis’ Groundbreakers event, CEO Hamid Moghadam and Secretary Doug Burgum emphasized the urgent need for abundant, reliable energy to power AI growth, digital infrastructure, and next-gen supply chains

As tariffs and trade policy continued to create uncertainty, there were indications of increased industrial real estate leasing activity in the second quarter, according to the new edition of the Industrial Business Indicator (IBI), which was recently issued by San Francisco-based real estate investment trust company Prologis.

New Colliers report shows vacancy rising and demand stabilizing across the nation’s largest industrial markets.

Chicago-based industrial real estate firm JLL announced today it is expanding its service portfolio, with the addition of its new Advanced Manufacturing Group. Company officials said that this group is part of its Industries team, and will focus on delivering specialized industry-leading expertise and integrated solutions to developers, occupiers and investors involved in the manufacturing of complex, customized products.

The April IBI Active Index reading came in at 54.4 (a reading of 50 or higher indicates growth is occurring), following a 58.4 first quarter reading and 19 months in the high 50s and low 60s range. And the IBI Utilization rate headed up to 85.1, after a collective 84.6 reading over February and March.  

In this podcast, Logistics Management Group News Editor Jeff Berman interviews Melinda McLaughlin, Senior Vice President, Global Head of Research, for Prologis.

The research, entitled, “More Occupiers Opting to Buy Industrial Facilities,” pointed to various data points as keys resulting in the increasing sales of industrial facilities.

The report, entitled “The E-Commerce Boom Isn’t Over: Implications for Logistics Real Estate,” examines how more than five years after the onset of the Covid-19 pandemic and the subsequent re-opening of the economy, recent consumer behavior is showing a return to value, convenience, and choice, while examining retailers, supply chains, and logistics real estate, as it relates to e-commerce going forward.

Despite the slowdown, long-term demand stays strong—driven by automation, energy efficiency, and changing food trends.

Occupiers signed leases for 49 mega distribution leases in 2024, topping the 43 signed in 2023 (2023 was the first year in which there was a decline in the number of mega distribution center leases—that saw sharp gains during the pandemic, topping out at 61 in 2022)

In its report, entitled “Three Trends Driving Resurgent 3PL Industrial Demand This Year,” CBRE stated that 3PLs share of bulk industrial leasing—or leases of 100,000 square-feet or more—increased to 34.1% through the third quarter, ahead of 30.6% a year ago at the same time.

The report, entitled “2024-2025 Industrial Tenant Demand Study,” explained that requirements have fallen 1.8% annually, to 792,000 square-feet (SF), with companies adopting a more cautious approach and focusing things like lean cost savings and carefully evaluating their options. And it added that this shift is paced by multiple things like inventory carrying costs, interest rates, and supply chain considerations.  

The report observes that while Big-Box industrial product was the beneficiary of the highest developer interest and tenant demand during what Colliers calls the “hyperactive real estate cycle in 2021 and 2022,” it has since returned to pre-pandemic levels, with less surplus and lower demand.