New warehouse construction in the United States will plunge next year due to a rapid increase in capital costs, while barriers to development in California will help make Texas the leading hotbed of leasing demand, according to forecasts by logistics real estate giant Prologis Inc.
Warehouse demand in Mexico will also accelerate as the United States sources more of its imported products from nearby countries, a trend known as “nearshoring,” the company predicted in an outlook report released on Dec. 8.
