Warehouse Demand Expected to Exceed Pre-Recession Peak in 2012
Prologis Expects Logistics Property Recovery Will Ramp Up Over Next 12-18 Months
By Randyl Drummer
Prologis, the world’s largest developer and owner of warehouses, expects the recovery in logistics real estate will accelerate through 2012, with an upswing in production, trade and inventories translating into nearly 400 million square feet of positive absorption globally next year.Even taking into account the economic soft patch earlier this year caused by rising oil and commodities prices, the debt crises in Europe and the U.S., and the natural disasters in Japan, the U.S. recorded the strongest second-quarter net absorption of logistics space in four years, according to the San Francisco-based global firm.
“The recession has been deeper and the recovery has been slower than anticipated, however, the global economy and the logistics real estate market are on track for a stronger rebound in the second half of 2011,” followed by even stronger growth in 2012, said David Twist, vice president, Prologis research, in the report titled, Recovery Continues For Logistics Real Estate. “We expect to see increased demand for modern logistics space over the next 12 to 18 months.”
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