SAN FRANCISCO–Skittish customers determined to keep a tight rein on costs are holding back on leasing additional logistics space, executives of Prologis reported in their 1Q 2024 earnings conference call.

"While operating conditions are healthy in the majority of our markets, customers remain focused on controlling costs, which is weighing on decision making and the pace of leasing," Prologis CEO Hamid R. Moghadam stated. He cited volatile high interest rates and mounting geopolitical concerns as factors that contributed to this hesitancy. But he described the effect of this indecision on net absorption as short-term.

"We remain optimistic about the fundamentals of our business, while being prepared for a slower environment in the next quarter or two," he said.

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