January 20, 2022 | S&P Global Market Intelligence<\/p>\n
Global supply chain difficulties could potentially last for multiple years, resulting in continued industrial real estate growth, Prologis Inc. executives said during an earnings call Jan. 19.<\/p>\n
Inventory-to-sales ratios are more than 10% below pre-COVID-19 pandemic levels, Prologis CFO Thomas Olinger said on the call. Companies will not only need to restock that shortfall but also build in additional safety stock.<\/p>\n
“This combination has the potential to produce 800 million square feet or more of future demand in the U.S. alone,” Olinger said.<\/p>\n
The industrial REIT reported strong earnings results during the fourth quarter of 2021, including record-breaking gains in some areas of the business. Olinger said that Prologis portfolio rents grew 18% globally and 20% in the U.S. during 2021 compared to the previous year. The rent growth set company records and exceeded management’s initial forecast.<\/p>\n
Consumption and demographic growth, the shift to e-commerce and the growing need for resiliency in supply chains were all major demand drivers that resulted in a record-breaking year, according to Olinger. Demand has been outstripping industrial real estate supply for the past few years, but it could start to balance out.<\/p>\n
“We believe demand will balance out with supply in 2022 and vacancy rates will remain at record lows in both our U.S. and international markets,” Olinger said.<\/p>\n
E-commerce continued to dominate, accounting for 19% of new leasing activity during the quarter. The industrial REIT signed 357 leases during the fourth quarter of 2021 and had 265 unique e-commerce customers in 2021. Olinger noted that both were high watermarks.<\/p>\n
\u00a0<\/em><\/p>\n Global supply chain difficulties could potentially last for multiple years, resulting in continued industrial real estate growth, Prologis…<\/p>\n","protected":false},"author":3464,"featured_media":162328,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"single-article.php","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[2806,3010,2939,2737,2965],"tags":[],"class_list":["post-162327","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-asset-class","category-asset-manager-news","category-commercial-real-estate","category-offering-type","category-performance"],"acf":[],"yoast_head":"\n