Industrial REITs own warehouses, distribution centers, and light manufacturing facilities that power e-commerce fulfillment and supply chain logistics. Prologis is the global leader, owning logistics facilities adjacent to major ports, airports, and population centers. The pandemic e-commerce surge drove industrial vacancy to historic lows and rents to record highs. New supply has moderated rent growth, but structural demand from e-commerce penetration growth and supply chain nearshoring provides long-term tailwinds.
Rent spreads on new leases vs. expiring leases reveal embedded NOI growth. Vacancy rates at Prologis in key logistics corridors (Inland Empire, New Jersey, Chicago) lead national trends. Development yield on new projects vs cap rates indicates value creation potential. Watch e-commerce market share gains driving warehouse demand.