Prologis Inc., the world’s largest industrial‑real‑estate company, significantly accelerated its warehouse construction in the quarter ended June 30, initiating over $900 million in new development starts—nearly triple the $324 million logged a year earlier. Approximately 65 percent of these projects were pre‑leased before ground was broken. Buoyed by strong demand from major retailers, consumer‑goods firms and automotive manufacturers, Prologis has raised its full‑year development forecast to $2.25–$2.75 billion, up from an earlier estimate of $1.5–$2 billion. CEO Hamid Moghadam emphasized that despite broader economic uncertainties, “companies are finding they need new space to grow into,” underscoring a sustained appetite for bespoke logistics facilities.
While Prologis sees robust demand for build‑to‑suit warehouses, the wider industrial market shows signs of softening: the U.S. warehouse vacancy rate climbed to 7.1 percent, the highest level since 2014, as speculative leasing cooled. The company today manages some 1.3 billion square feet of industrial space globally, with marquee tenants including Amazon, FedEx and Home Depot.
Financially, Prologis outperformed analyst expectations in Q2, reporting revenue of $2.18 billion, though net earnings dipped year‑over‑year to $571.2 million. On an adjusted basis, core funds from operations reached $1.46 per share, prompting a modest upward revision of its full‑year FFO guidance. The company’s strong balance sheet and strategic pipeline position it to meet escalating demand for logistics real estate amid a shifting trade and consumption landscape.
