The latest Industrial Business Indicator (IBI) from Prologis reveals challenges in the U.S. logistics market, noting a utilization rate of 84.4%, below the normal range. Key findings include a 3% decline in average market rents, particularly in Southern California, and vacancies nearing a cyclical peak of 6.8%. Development starts are down 20% year-to-date, with a low construction pipeline. Prologis anticipates that with healthy consumer consumption and stabilized space returns, market conditions could improve within two to four quarters, leading to increased rents as demand meets supply.

Source: https://www.logisticsmgmt.com/article/soft_landing_scenario_could_lead_to_rent_growth_as_demand_supply_imbalance_stabilizes_says_prologis/