The structural growth rate of demand for warehouses has risen. Consumption has grown as a share of logistics demand, while production- and trade-oriented uses have decreased.
Prologis Research forecasts that global e-commerce penetration will rise by ~150 bps/year over the next five years. The stickiness of online shopping and a lack of brick-and-mortar retail options reinforce a new sales trajectory going forward.
The resilience of the supply chain is being tested as companies expand globally, in turn driving the need for modern stock and decentralized networks. Coupled with a rising consumer class, this worldwide upgrade should generate the need for three to four billion square feet or more of modern logistics stock over the next cycle.
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