Prologis sees U.S. warehouse market tightening through 2026

Core Insights - Prologis indicates a market turnaround with expectations for improved net absorption, occupancy, and rents through 2026 [1][5] Company Performance - Prologis achieved record lease signings in 2025, covering 228 million square feet, with the e-commerce sector accounting for 20% of new leases [2] - The fourth quarter saw lease starts of 43.8 million square feet, a 6% year-over-year decline, but occupancy reached 95.8%, marking the highest rate for 2025 [3] - Prologis reported fourth-quarter consolidated revenue of $2.09 billion, an 8% year-over-year increase, aligning with analysts' expectations [4] Financial Guidance - The 2026 guidance for core funds from operations (FFO) is set at $6.00 to $6.20 per share, with an average occupancy forecast of 94.75% to 95.75% [5] - Net absorption is projected at 200 million square feet in 2026, an increase from 155 million square feet last year, with expected vacancies reducing from 7.4% to approximately 7.1% to 7.2% [6] Market Trends - Net effective rent change on multiyear leases was 50% last year, with a target of 40% for this year [7] - Two-thirds of Prologis' 2026 development starts are in the U.S., with 40% of projects representing data centers [7]