Prologis’ IBI, the firm’s survey of logistics real estate customer activity, has revealed improving momentum through early 2021. Customer activity rose steadily from an index reading of around 56 in fourth quarter 2020 to an index reading of 59 in first quarter 2021. The late April survey revealed a sharp jump to 68, reflecting increased throughput and indicating strong future demand growth. Utilization neared 85 percent, as healthy retail sales kept pace with the restocking of goods.
Logistics demand was 93 million square feet in the first quarter after reaching more than 100 million square feet in fourth quarter 2020 — a record high. Expansion activity was on display across many industries, building sizes and market categories. Demand exceeded supply for the second consecutive quarter, pushing vacancy down 10 basis points to 4.7 percent and increasing market rents by 2.4 percent.
Prologis Research has revised its forecast upward for both demand and supply to 30