Vacancy rates for large logistics buildings will fall by 100 basis points or more in Europe and the United States during 2025, says Prologis.

In a new report entitled Seven Bold Predictions for 2025: Supply Chain Trends to Watch, the REIT says vacancy rates for warehouses that are 500,000 square feet (46,500 square metres) or larger in both continents will tighten due to a 65 percent year-over-year drop in 2024 of new large logistics space deliveries. Prologis says groundbreaking for large bulk buildings soared during 2021 and 2022 to three times the typical levels in the United States and double the average amount in Europe. In 2024, however, development returned to pre-pandemic norms. Meanwhile, demand for large product is strong, averaging 26 million square feet (2.4 million square metres) per quarter over the past year in the United States, for example, which is 77 percent higher than the historical average.

New construction of logistics real estate buildi