- April 1, 2024: Vol. 16, Number 4

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Global logistics rent growth solid in 2023

by Jennifer Molloy

Global logistics real estate rent growth totalled 6 percent in 2023, underscoring the resilience of logistics real estate fundamentals, according to the Prologis Logistics Rent Index, released in late February. Nearly all markets globally recorded positive real rent growth, amid positive demand, low vacancy, and the need to evolve supply chains in response to changing consumer expectations, operational challenges and persistent disruption.

The index examines net effective rental growth trends across markets in North America, Europe, Asia and Latin America. Rental rates at the regional and global levels are weighted averages based on estimates of market revenue (market stock multiplied by market rental rate).

Main findings

Latin America led the world as Mexico rents surged 19 percent, driven by ultra-low vacancy, rapidly rising replacement costs, and the emergence of nearshoring, a new secular driver. The majority of markets posted
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