Global logistics rents declined by five percent bongdaso mobile 2024 due to normalising market conditions, according to a new white paper from Prologis.
The manager says an influx of new supply — coupled with positive but subdued demand rooted bongdaso mobile economic, financial market and supply chain uncertainty — pushed vacancy rates up bongdaso mobile most markets across the globe. As a result, rents have fallen after more than a decade of consistent growth.
Europe saw a 1 percent decline bongdaso mobile net effective rents. Most European markets saw stable headline rents, due to deliveries at peak pricing bongdaso mobile 2022, which incentivised developers to hold firm to achieve planned margins, according to Prologis. But rising vacancies, particularly bongdaso mobile supply-heavy markets such as Poland and Hungary, resulted bongdaso mobile increased concessions. The vacancy rate bongdaso mobile Europe was 4.8 percent bongdaso mobile the fourth quarter of 2024 — up by 100 basis points year-over-year.
Upward movement bongdaso mobile free rent reduced net effective rents by 1 percent bongdaso mobile Southern Europe to 4 percent bongdaso mobile central Europe during 2024. High-barrier markets, such as France and Germany, fared better because of low vacancy and constrained supply. Soft demand, influenced by economic headwinds and geopolitical risks, could weigh on 2025 performance. Limited new supply and high replacement costs, however, should support rental rate increases bongdaso mobile late 2025.
The United States and Canada saw a 7 percent decrease bongdaso mobile rents, which was pulled down by Southern California. Oversupply bongdaso mobile Phoenix and northern Las Vegas reversed rental gains, and weak demand bongdaso mobile the Pacific Northwest pressured rents. Rents fell by 1 percent otherwise, with Southeastern markets showing resilience. Vacancies are expected to decline, and leasing activity improve bongdaso mobile 2025, due to economic growth, a shifting trade environment, nearshoring and the demand for bulk space.
bongdaso mobile Asia, China saw accelerated market rent declines, which fell by 9 percent. Rental decline is expected to slow, as the construction pipeline decreases, and existing vacancies are absorbed. Potential tariffs may create volatility, however. bongdaso mobile Japan, rents increased by 2 percent bongdaso mobile 2024. Labour-law changes pushed tenants to seek efficient, modern facilities. Construction costs increased, reducing new starts bongdaso mobile metropolitan areas. High replacement costs are expected to drive up net effective rental rates, says the paper.
Despite annual rent growth bongdaso mobile the United States and Europe being negative for the first time since the global financial crisis, leases rolling bongdaso mobile 2025 still face a significant increase bongdaso mobile most locations. Year-end 2024 market rents were 59 percent higher bongdaso mobile the United States and 33 percent higher bongdaso mobile Europe than year-end 2019.
As market rents expect recovery due to constrained supply, high replacement cost and demand for class A properties, upward pressure on a broad range of locations and building types will lead to improved recovery bongdaso mobile market rents bongdaso mobile 2025 and 2026, adds the report.
Source: https://irei.com/publications/article/global-logistics-rents-declined-by-5-bongdaso mobile-2024/
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