REAL ESTATE NEWS

Logistics real estate is poised for new growth as companies increasingly prioritize speed, resiliency and risk readiness in their supply chains. According to Prologis? Supply Chain Intelligence Report 2026, high-functioning industrial assets in locations with strong infrastructure and proximity to growing supply networks will see heightened demand, while land and utility constraints are expected to intensify competition and boost the value of infill sites.

The report attributes these shifts to geopolitics, tariffs and evolving global economies, all reshaping production and distribution patterns.

?Following a multiyear period focused on risk management post-pandemic, customers are moving toward risk readiness ? anticipating disruptions and positioning operations for resiliency and efficiency,? Prologis said.

One significant trend is the regionalization of supply chains. Nearly 60% of executives surveyed expect supply chains to become more regional by 2030, while 30% foresee continued globalization. Regionalization will require duplicative logistics footprints across key markets, emphasizing the need for strategic industrial locations.

Mexico continues to benefit from nearshoring, driven by competitive labor rates, established supplier networks and proximity to U.S. consumers. Two-thirds of respondents said they plan to expand further in Mexico, supporting growth along the North?South trade corridor and boosting warehousing demand in Texas and the Midwest. At the same time, long-standing trade ties with Asia remain relevant for cost-sensitive, low-value-added manufacturing, while U.S. onshoring of high-value sectors gains traction. Sixty-two percent of executives also plan to expand U.S. footprints to support regionalization, with manufacturing-related leasing concentrated in Texas, Chicago and the Southeast.

Demand for modern, well-located Class A logistics facilities is accelerating, particularly in consumer-oriented markets. Supply chain executives ranked expansion of high-quality logistics space as a top priority, and many users are consolidating operations while planning for long-term growth, the report said. Build-to-suit development and user-owner sales are increasingly preferred, particularly for e-commerce and manufacturing operations with specialized requirements. Facilities offering speed, efficiency and proximity to consumers are expected to outperform in the coming decade.

Competition for industrial-zoned land is also intensifying as data centers grow, driven by AI and digital infrastructure. Power reliability has emerged as a top factor, with nine in ten organizations experiencing energy-related disruptions in 2025 and 76% expecting facility power needs to rise by 10%?50% within five years.

Source: GlobeSt/ALM