Prologis posts 2025 leasing high and signals tighter warehouse market ahead

This piece reveals Prologis’ record lease signings in 2025 and explores the ripple effects for the logistics sector. Expect a closer look at occupancy, earnings guidance, and what shippers and carriers should plan for next.

What happened: the topline numbers

Prologis reported robust results for the period surrounding 2025: consolidated fourth-quarter revenue rose to $2.09 billion, an 8% year-over-year increase, while core funds from operations (FFO) landed at $1.44 per share, matching market expectations. The headline grabber, though, was the sheer volume of new leases signed across the year—an impressive 228 million square feet of logistics space committed by customers.

Key metrics at a glance

Why tenants went long: drivers behind record signings

Several forces nudged customers into longer leases after a few years of uncertainty. Tariff chatter and a post-Covid supply-demand mismatch had many companies sitting on the fence, but in 2025 the sentiment shifted. The main drivers included:

• Inventory reshoring and de-risking: Companies rebuilding safety stock and diversifying supply chains wanted predictable space close to demand centers.
• E-commerce tailwinds: Continued growth in online shopping means more last-mile and regional distribution capacity is needed.
• Capacity scarcity expectations: With signs of bottoming occupancy and limited new speculative absorption, tenants locked in space before rents firmed.
• Integrated solutions demand: Tenants sought platforms combining logistics, digital infrastructure and energy systems—areas Prologis emphasizes.

Quarterly nuance

Even with the full-year record, Q4 had its quirks: new leases commencing were down 6% year-over-year to 43.8 million sq ft, and average occupancy for the quarter fell slightly to 95.3% from the prior year, though occupancy finished the quarter at 95.8%—the highest level seen all year. In short, the market looks like it’s found its footing after the slump.

What it means for logistics providers and shippers

If you work in freight, warehousing, or distribution, Prologis’ activity is not just corporate bragging—it’s a signal. Tightening warehouse markets tend to push rents up, change the bargaining power between landlords and tenants, and influence how companies plan inventory placement and transportation routes.

Practical impacts

• Higher storage costs: Increased occupancy typically leads to upward rental pressure, which can flow through to product margins or push firms to optimize inventory turns.
• Shift in shipment patterns: Shippers may favor cross-docking, shorter dwell times, or more frequent, smaller deliveries to reduce pallet and container storage needs.
• Modal and routing choices: Expect a greater focus on intermodal options and centralized dispatch strategies to reduce haulage costs and curb last-mile inefficiencies.
• Carrier demand: Less available warehouse capacity can boost demand for dedicated haulage lanes and scheduled courier and pallet services.

Strategies for staying ahead

Logistics teams should treat this like planning for a storm: don’t wait until the rain starts. Useful tactics include:

1. Conduct a network optimization study to identify where consolidation or satellite locations would make sense.
2. Negotiate longer-term haulage and forwarding contracts to lock in rates and capacity.
3. Invest in visibility tools that cut lead times and reduce unnecessary dispatch or return trips.
4. Build partnerships with flexible carriers and moving services that can handle bulky, irregular, or international freight on short notice.

Cost versus flexibility: a balancing act

Some firms will choose to pay a premium for proximity to demand centers; others will double down on routing and scheduling efficiencies to keep transport costs down. Either way, the rising probability of tighter markets means planning and contingencies should be part of the budget conversation.

Outlook and 2026 guidance

Prologis guided to a 2026 core FFO range of $6.00 to $6.20 per share, with expected average occupancy between 94.75% and 95.75% and development starts of $3–$4 billion. That guidance suggests management expects steady demand and a cautious but constructive development pipeline—enough to relieve pockets of strain without flooding the market.

From a logistics standpoint this suggests moderate tightening rather than a dramatic squeeze; expect pockets of capacity stress in key distribution corridors rather than a nationwide crisis.

Highlights: Prologis’ record lease signings show confidence returning to industrial real estate, signaling tighter warehouse markets and upward pressure on rents in key regions. Even the most glowing analyst review can’t substitute for personal experience — visiting a site, checking real-time occupancy, and testing your own logistics assumptions will always be priceless. On GetTransport.com, you can order your cargo transportation at the best prices globally at reasonable prices. This empowers you to make hands-on decisions without paying over the odds and helps avoid surprises when moving assets, whether it’s a pallet, container, bulky machinery, or a full housemove. Start planning your next delivery and secure your cargo with GetTransport.com. Book your Ride GetTransport.com.com.com

In short, Prologis’ 2025 leasing surge matters to anyone who ships, stores, or moves goods: it hints at a tighter supply of warehouse space, modest upward pressure on rents, and a renewed emphasis on strategic distribution planning. Logistics teams should consider options like diversified site selection, locked-in haulage contracts, and flexible carrier partnerships to mitigate cost and service risks. Platforms like GetTransport.com can simplify the operational side by offering affordable, global cargo transportation—from office and home moves to bulky freight and vehicle delivery—helping businesses and individuals manage shipment, dispatch, and relocation with greater confidence. Ultimately, aligning transport, warehousing and forwarding choices now will keep freight flowing and deliveries on time when the market tightens further.