New warehouse construction in the United States will plunge next year due to a rapid increase in capital costs, while barriers to development in California will help make Texas the leading hotbed of leasing demand, according to forecasts by logistics real estate giant Prologis Inc.
Warehouse demand in Mexico will also accelerate as the United States sources more of its imported products from nearby countries, a trend known as “nearshoring,” the company predicted in an outlook report released on Dec. 8.
Prologis is the world’s largest warehouse developer, with investments in roughly 1 billion square feet of logistics properties globally. The San Francisco-based real estate investment trust disclosed in October that it’s taking a more cautious approach to new developments given the impact of the Federal Reserve’s interest rate hikes and a “rapid change in market sentiment.”…