“Economic Crosscurrents” and the evolution of logistics real estate clusters

Prologis, Inc., a global leader in industrial real estate, recently released a research paper titled “The Evolution of Logistics Real Estate Clusters.”

According to a recent study by Prologis Research, evolving trade patterns, along with advances in technology and the expansion of e-commerce, reinforce the value proposition of core market locations.

To better understand the evolution of the agglomeration of distribution centers, the research team developed two proprietary indices—the Modern Logistics Concentration (MLC) and the Modern Logistics Quotient (MLQ)—that measure the size, relative maturity, demand drivers and growth potential of logistics clusters around the world.

“Compiling a globally consistent dataset for logistics real estate and its associated demographics was a considerable undertaking,” says Chris Caton, senior vice president, Prologis Research. “This work quantifies the disparity between existing real estate and new demand, which is driven by the modernization of global supply chains.”

Caton maintains that it also explains the ongoing growth in developed economies and identifies the outsized demand that has surfaced in emerging markets despite what he calls, “economic crosscurrents.”