Key Takeaways
- • Prologis survey of more than 1,800 business leaders across the U.S., U.K., Germany, India, China and Mexico found 91% said retailers and logistics providers "urgently" need more decentralized fulfillment networks to meet delivery expectations.
- • The share of companies planning to keep their existing global footprint fell 14 percentage points from a year ago to 36%.
- • Prologis CEO Dan Letter said the company has narrowed its focus to the most dynamic consumption centers and specific submarkets within those cities, and has sold more than 200 million square feet of property over 15 years while holding about 1.3 billion square feet.
- • Power reliability ranks as the top factor in logistics location decisions, and Prologis says it generates over 1.4 gigawatts of power from its solar and storage business.
- • Three-quarters of surveyed executives plan major investments in AI demand forecasting and inventory replenishment over the next three years.
Summary
Demand for warehouse space is being reshaped by faster delivery expectations and concerns over energy supply, according to a new survey from Prologis conducted with the Harris Poll. The survey drew responses from more than 1,800 business leaders in the U.S., U.K., Germany, India, China and Mexico, and found that 91% believe retailers and logistics providers "urgently" need more decentralized fulfillment networks. Companies are pursuing same-day delivery as a primary goal, with the share offering it doubling since 2019, and respondents said speed now outranks price as a source of competitive advantage.
The survey shows companies are adjusting their footprints accordingly. The share planning to maintain their existing global footprint dropped 14 percentage points year over year to 36%. More than half are diversifying and regionalizing their supply chains, and about a third are pursuing nearshoring and reshoring, according to the report.
Proloigis CEO Dan Letter said the company's strategy centers on consumption hubs, targeting the most dynamic population centers and specific submarkets within those cities to be closer to customers. He noted the company has sold more than 200 million square feet of property over the last 15 years after customers indicated those locations did not fit their long-term plans, even as its portfolio totals about 1.3 billion square feet.
Energy infrastructure is also becoming a central consideration. Power reliability ranks first in logistics location decisions, with energy resilience a leading concern partly due to artificial intelligence. Just over a quarter of surveyed executives expect industrial landlords and developers to lead or fund on-site energy resilience infrastructure, including solar, energy storage and fleet charging. Letter said Prologis expanded its energy business about five years ago and now generates more than 1.4 gigawatts of power from its solar and storage operations, and is helping customers electrify their fleets.
AI is also emerging as a competitive tool in logistics and warehousing. Respondents identified demand forecasting and agentic AI systems as among the most transformative technologies for reshaping supply chains over the next three years, and three-quarters plan significant investments in AI demand forecasting and inventory replenishment. Letter said Prologis has invested alongside its customers in AI development to stay ahead of their needs.
The survey shows companies are adjusting their footprints accordingly. The share planning to maintain their existing global footprint dropped 14 percentage points year over year to 36%. More than half are diversifying and regionalizing their supply chains, and about a third are pursuing nearshoring and reshoring, according to the report.
Proloigis CEO Dan Letter said the company's strategy centers on consumption hubs, targeting the most dynamic population centers and specific submarkets within those cities to be closer to customers. He noted the company has sold more than 200 million square feet of property over the last 15 years after customers indicated those locations did not fit their long-term plans, even as its portfolio totals about 1.3 billion square feet.
Energy infrastructure is also becoming a central consideration. Power reliability ranks first in logistics location decisions, with energy resilience a leading concern partly due to artificial intelligence. Just over a quarter of surveyed executives expect industrial landlords and developers to lead or fund on-site energy resilience infrastructure, including solar, energy storage and fleet charging. Letter said Prologis expanded its energy business about five years ago and now generates more than 1.4 gigawatts of power from its solar and storage operations, and is helping customers electrify their fleets.
AI is also emerging as a competitive tool in logistics and warehousing. Respondents identified demand forecasting and agentic AI systems as among the most transformative technologies for reshaping supply chains over the next three years, and three-quarters plan significant investments in AI demand forecasting and inventory replenishment. Letter said Prologis has invested alongside its customers in AI development to stay ahead of their needs.
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