United States Industrial Market Signals Strength

Prologis, Inc. (NYSE: PLD), the leading global owner, operator and developer of industrial real estate, recently published an in-depth analysis of the United States industrial real estate market in a paper titled “The Shape of the U.S. Industrial Recovery.”

In the report, the company’s research team points to a strengthening of the industrial market with the recovery transitioning into expansion. They believe this is driven by three key factors:

– Effective rents expected to rise 25% over next four years;

– Pent up demand: Exhibited by strong net absorption in the fourth quarter and high readings from Prologis’ proprietary Industrial Business Index survey of customer activity levels; and

– Broadening leasing velocity: Market tightness is supporting rent growth in more asset types, in more markets and in more locations in those markets

Read the full story at The Registry.