Growth will be the watchword for most logistics markets in 2021 fueled by trends in supply and demand fundamentals. 

A recent Prologis report predicts strong rent growth across both the US and global logistics markets this year, thanks to a “wall of capital” that flocked to the sector amid the global pandemic. There are risks, of course: the pandemic still isn’t over, and geopolitical headwinds continue to shift. The logistics sector has been a resilient, relatively safe harbor for investment over the past year, leading to potential areas of oversupplybut Prologis predicts structural demand hurdles and increasing replacement costs will mean new supply isn’t likely to meet demand in most areas, at least not this year.

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