2023 Prologis Predictions: Warehouse Development to Drop to 7-Year Low
December 13, 2022 – Prologis Research predicts warehouse development in 2023 will drop to a seven-year low, even as rent growth exceeds 10%. Driven by a rapid rise in the cost of capital, development starts will decline by 60% to less than 175 million square feet in 2023. Low vacancy will produce another year of double-digit rent growth. Even if new demand fell to zero, the national vacancy rate would increase by just 260 bps to 5.9%, well below the long-term average.
Read more on Prologis Research 2023 predictions here.