Prologis, Inc., the leading global owner, operator and developer of industrial real estate, today published an in-depth analysis of global rents for logistics facilities in a paper titled “Entering the Sweet Spot in the Cycle for Logistics Real Estate: An Extended Rental Rate Expansion.”In the report, the company's research team estimates overall rents will grow by more than 5 percent per year from 2014 to 2017, reaching a total increase of 20 to 25 percent during the four-year period. This outlook is supported by a trend in structural drivers and a recovery in operating fundamentals.
“Rents today still don't broadly support new construction, but tightening vacancy rates are reversing that dynamic,” said Chris Caton, vice president and head, Prologis Research. “In addition, as replacement costs rise with global economic expansion, we expect the rent required to justify new construction to rise in kind and lead to an extended period of pronounced rent increases, particularly in cyclical recovery global markets in the U.S. and Europe.”
The complete report is available online in the Research section only at www.prologis.com.Prologis Research monitors, analyzes and reports on key trends and dynamics in both real estate and supply chain management to provide customers, investors and the general public with insight from a global and large-scale perspective.
Source : Company