Warehouse operator Prologis anticipates a new growth cycle in 2026, following soft rental demand in early 2025 that rebounded in the second half. Global rents fell 3.7% last year, with U.S. markets down 4.5%. Prologis expects moderate rent growth in 2026, driven by increased demand and constrained supply.

Demand from e-commerce and consumption-related companies led the way in 2025, while manufacturing lagged. Global facility completions are projected to decrease in 2026 due to high construction costs and regulatory barriers. Replacement costs are currently 20% above market rents, with few speculative projects being pursued.

Prologis forecasts net absorption of 200 million square feet in 2026, up from 155 million in 2025. New warehouse deliveries are expected to decrease, lowering vacancies and increasing rents. The company’s U.S. outlook calls for improvements in key metrics like occupancy and rents, indicating a positive trend in the market.

Read more at Yahoo Finance: Prologis forecasts ‘moderate global rent growth’ in 2026