In 2024, rental rates for logistics properties decline in the US and Canada.

Real estate rents for logistics facilities in the U.S. and Canada dropped by 7% last year, marking the first annual decline since the 2007-2009 financial crisis, according to the Prologis Logistics Rent Index. Southern California experienced significant rent decreases exceeding 20%, influenced by prior surges in demand and excess supply in some markets. Despite this decline, 2024 rents remain 59% higher than five years ago. A shift towards Class A properties is noted, while demand is expected to rise in 2025, driven by third-party logistics providers as businesses seek flexibility and efficiency.