Global logistics rents declined by five percent in 2024 due to normalising market conditions, according to a new white paper from Prologis.

The manager says an influx of new supply — coupled with positive but subdued demand rooted in economic, financial market and supply chain uncertainty — pushed vacancy rates up in most markets across the globe. As a result, rents have fallen after more than a decade of consistent growth.

Europe saw a 1 percent decline in net effective rents. Most European markets saw stable headline rents, due to deliveries at peak pricing in 2022, which incentivised developers to hold firm to achieve planned margins, according to Prologis. But rising vacancies, particularly in supply-heavy markets such as Poland and Hungary, resulted in increased concessions. The vacancy rate in Europe was 4.8 percent in the fourth quarter of 2024 — up by 100 basis points year-over-year.

Upward movement in free rent reduced net effective rents by 1 per