Prologis anticipates an increase in customer inventory levels as businesses prioritize resilience against tariff risks, according to CFO Tim Arndt. Tenants are seeking overflow space and flexible options, particularly from third-party logistics services, leading to higher utilization rates in flex spaces. Despite signing 80 leases totaling over 6 million square feet recently, leasing activity is down by 20%. Prologis finds that companies with production in China face the most uncertainty, while those in insulated sectors like food and beverage remain stable. Mexico and Brazil are expected to benefit amid this uncertainty.

Source: https://www.supplychaindive.com/news/prologis-warehouse-outlook-tariffs/745829/