Is Prologis giving a warning or caution sign about the industrial real estate market slowdown shift ahead report?

In recent reports, Prologis – the world’s largest industrial property company – warned of a potential slowdown in the market. Here’s a concise breakdown:

• Hamid Moghadam, CEO of Prologis, expressed perplexity: “It’s a very perplexing environment… all the indicators of demand… pointing in the right direction, but people are not converting that into as much actual leased space.”
• Prologis reported better-than-expected revenue, but revised its annual guidance downward, citing factors like high interest rates and economic uncertainty.
• Despite the caution, companies like Amazon and Home Depot are still in the market for new space. Amazon CEO Andy Jassy stated plans to double same-day delivery sites.
• Real-estate analysts from Savills and Cushman & Wakefield noted a flattening in pricing for logistics properties, indicating potential market shifts.
• The impact was immediate, with Prologis shares falling 7.2% in trading. Year-to-date, shares have declined by about 20%.

The alert from Prologis serves as a crucial reminder, signaling potential shifts in the industrial real estate sector. It’s imperative to stay attuned to these developments as the market progresses.

Let’s focus on my market of Phoenix-Scottsdale-Mesa, Arizona, and historically, the industrial real estate narrative in Phoenix-Scottsdale-Mesa, Arizona has been overwhelmingly positive, reminiscent of the exuberance surrounding cryptocurrency (to the moon🚀). However, this is the first time I have heard a company involved in industrial real estate give even a whisper of a slowing (warning) sign. Although they deal with properties throughout the USA and beyond, I would begin to tread lightly in the Phoenix, Arizona area industrial market. If you have already made a lot of money from your industrial investment, consider selling. If you are a buyer, run the numbers, take advice from your consultant/advisors, be patient, and go with your gut.