Prologis Sees Structural Changes to Logistics Real Estate in Wake of Coronavirus

In the latest edition of the Nareit REIT Report podcast, Chris Caton, global head of strategy and analytics at Prologis, Inc., discussed the impact of COVID-19 on the warehouse and logistics industry.The current uncertainty is likely to be a headwind for the economy and all forms of real estate, logistics real estate included, Caton said.Caton pointed out that logistics real estate has benefited from historic low vacancy rates and strong demand and disciplined supply. Potential customers who have had a difficult time securing space up until now may see that situation change, he said.Investors, meanwhile, are likely to recognize “the relative beneficial attributes of logistics real estate in terms of the long-term demand drivers against other categories that have more uncertainty,” Caton said.