Prologis: Annual logistics rent index

Despite inflation concerns, consumers are still shopping, and intense competition for warehouses is pushing rents higher than ever. Prologis found rents for industrial real estate increased by a record 15.4 percent worldwide in 2021.

Other key highlights:

Rents grew the fastest in Inland Empire, Toronto, and Reno, Nevada. The high rents indicate that companies were intensely focused on moving goods through ports of entries and controlling inventories. Adjacent markets like Las Vegasand Reno benefited as well, given their locations to reach multiple markets Rents also spiked because the price of construction materials rose 40 percent in 2021. Developing a new logistics building is more expensive than ever In 2022, Prologis anticipates that rents will continue to rise due to pent-up demand. High consumption and the need for supply chains to accommodate e-commerce volumes and build resilient inventories should keep vacancies rates at record lows ev