We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • INDUSTRY PRESS ROOM
  • ABOUT
  • CONTACT
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • One-Off Sound Off
      • Global Logistics and Risk
      • Empowering Your Performance Edge
      • Analytics & Big Data
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • Parcel Forum 2022
    • MODEX 2022
    • Upload Your Video
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • One-Off Sound Off
      • Global Logistics and Risk
      • Empowering Your Performance Edge
      • Analytics & Big Data
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • Parcel Forum 2022
    • MODEX 2022
    • Upload Your Video
Home » Warehouse rents poised for big increase, Prologis co-chief predicts
newsworthy

Warehouse rents poised for big increase, Prologis co-chief predicts

March 22, 2012
Peter Bradley
No Comments

Warehouse rental rates are poised for a significant increase due to a tightening of supply and an increase in global demand for space, according to one of the top two executives of the world's largest industrial property developer.

Walter C. Rakowich, co-chief executive of Prologis, Inc., told attendees at the annual International Warehouse Logistics Association (IWLA) conference earlier this week that an aging warehouse network will render a growing number of facilities obsolete and unusable. In addition, the growth of global trade will increase the need for distribution center space in both established and emerging markets, he added.

Keynoting the group's annual conference this week, Rakowich said market occupancies are rising, and the industry would need to add as much as 75 million square feet in warehousing capacity merely to replace obsolescent space.

"Customer sentiment is bullish, investors are driving up values, and rents are poised to grow," he said.

The specter of increasing rents should be balanced by the fact that rents fell substantially during the 2008-09 recession, according to Rakowich. He said current asset values are roughly 80 percent of their pre-recession peaks.

Obsolescence is driven by a variety of global factors, he said. For example, much of the warehousing space in fast-growing Asian economies was never configured for distribution, but for manufacturing.

"There's a tremendous opportunity for development," he said. He pointed to Canada and Brazil as nations that are ripe for development of DC space.

San Francisco-based Prologis, which last year completed a merger with AMB Property Corp., has $43 billion of assets under management and investments in 600 million square feet of distribution facilities in 22 countries across four continents. Prologis is "cautiously optimistic" about its prospects this year, Rakowich said.

Warehousing 3PL Logistics Network Design
KEYWORDS ProLogis
  • Related Articles

    Wal-Mart poised for big e-commerce push in what might be make-or-break move

    Warehouse automation, delivery robot markets poised for growth

    Developers experiment with multistory DCs as tight warehouse market drives high rents, CBRE says

Peterbradley
Peter Bradley is an award-winning career journalist with more than three decades of experience in both newspapers and national business magazines. His credentials include seven years as the transportation and supply chain editor at Purchasing Magazine and six years as the chief editor of Logistics Management.

Recent Articles by Peter Bradley

From temp to management: interview with Diane Garforth

Watching over intermodal's interests: interview with Joni Casey

Building resilience into the supply chain: interview with Yossi Sheffi

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • Schneider welcomes first battery-electric truck

  • Fred Smith is not worried about Amazon

  • RJW LOGISTICS GROUP EXPANDS RETAIL LOGISTICS OPERATION TO DALLAS

  • Maersk deploys indoor drones for warehouse inventory counts

  • Outlook 2023: What’s in store for logistics/supply chain?

Now Playing on DCV-TV

5afe63a5 7125 4318 b851 1e5738df1c91

Patterson Fan Co. | HVLS V-Series Ceiling Fan | Staging Area Air Movement

DCV-TV 4: Viewer Contributed
The Patterson V-Series is a high-volume, low-speed industrial ceiling fan that is designed to circulate a lot of air at a very low speed. These fans, ranging in diameters of 8’ all the way to 24’, are perfect for large, open spaces such as staging and shipping areas. One 24’ fan can generate a cooling effect of 6 –...

FEATURED WHITE PAPERS

  • The five best applications for robotic lift trucks in warehouse environments

  • Fulfillment Facility Improved Efficiencies by 4x

  • 3PLs: Complete Orders Faster with Flexible Automation

  • Reusable Packaging for the New Wave of Supply Chain Automation

View More

Subscribe to DC Velocity Magazine

GET YOUR FREE SUBSCRIPTION
  • SUBSCRIBE
  • NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2023. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing