Prologis' Research team releases a new paper, “Persistent Disruption”, which explores the shift logistics customers are making from "just in time" to "just in case" – or a permanent shift toward resilience. This shift will create powerful demand tailwinds in logistics real estate and could prolong or worsen the current shortage of space.

Research key takeaways include:

• Robust inventory-to-sales ratios are key to the future supply chain. Disruptions in the flow of goods will persist beyond the pandemic, driven by structural forces in climate, geopolitics and labor.
• Higher inventories will require substantially more logistics real estate or more to fix the shortage and build in resilience. Logistics real estate leasing is not yet reflecting this demand because companies need to first focus on immediate inventory challenges.
• Gateway locations are poised to benefit as the first step on the consumption end of supply chains. Because these locations generally have high barriers to new logistics development, demand is expected to outstrip supply.

Additional Resources/Insights:

• Press Release: Warehouse Space Sold Out; Demand at All-time High
• Industrial Business Indicator™ (IBI)

For the full research, please click here.