Prologis has presented its forecasts for the supply chain in 2024
Their previous forecasts for 2023 highlighted key themes, such as a slowdown in construction due to stricter regulations and increased costs. While some trends remained relevant, the new year brings anticipated challenges.
The first of these trends is the end of the global recession in freight transport, which suggests double-digit growth in trucking and maritime logistics. Logistic demand in Southern California is expected to be among the top 5 in the United States and reach its highest level since 2021.
Another trend is the deepening slump in construction, with global construction activity at its lowest levels since the 2008 financial crisis. Rent in Latin America is expected to increase by 100%, with Mexico as the main driver of this growth.
China is expected to experience its second-highest level of demand in history, which should help to lease unoccupied spaces from the past. Technological progress and automation are expected to increase the energy demands of logistic real estate.
At the same time, declining interest rates are expected to double private capital financing of real estate. Based on previous forecasts, a turnaround in market capitalization rates is expected, with lower rates in the US and Europe and growth expected in Asia.
Overall, Prologis expects 2024 to be a year of healthy demand growth, limited supply, and continued technological development in logistic real estate and capital markets.
Discover the comprehensive Prologis forecast in its entirety right here.