Key Takeaways
- • Prologis Research released proprietary analytical frameworks—the Modern Logistics Concentration (MLC) and Modern Logistics Quotient (MLQ) indices—to quantify the size, maturity, demand drivers, and growth potential of logistics real estate clusters globally.
- • The research quantifies supply-demand disparity in logistics real estate driven by modernization of global supply chains, with particular emphasis on outsized demand emerging in developing markets alongside continued growth in developed economies.
- • As of June 30, 2015, Prologis operated approximately 670 million square feet of industrial real estate across 21 countries, serving more than 5,200 customers including third-party logistics providers, transportation companies, retailers, and manufacturers.
- • Evolving trade patterns, technological advances, and e-commerce expansion reinforce the strategic value of core market locations in the logistics real estate sector, informing Prologis's cluster-focused investment thesis.
Summary
Prologis, Inc., the global leader in industrial real estate, released a comprehensive research paper on August 18, 2015, analyzing the evolution of logistics real estate clusters worldwide. The research addresses a critical gap in industry understanding by developing two proprietary measurement indices designed to systematically evaluate logistics clustering dynamics on a globally consistent basis.
The Modern Logistics Concentration (MLC) and Modern Logistics Quotient (MLQ) indices represent the company's quantitative framework for assessing logistics clusters. These tools measure four key dimensions: cluster size, relative maturity, demand drivers, and growth potential. According to Chris Caton, senior vice president of Prologis Research, "Compiling a globally consistent dataset for logistics real estate and its associated demographics was a considerable undertaking." The analytical work enables identification of disparities between existing real estate supply and emerging demand generated by supply chain modernization.
The research findings underscore divergent market dynamics: sustained growth in developed economies coexists with disproportionately high demand in emerging markets, despite broader economic volatility in those regions. These insights reflect the intersection of three structural forces reshaping logistics real estate: evolving international trade patterns, technological innovation, and the continued expansion of e-commerce globally. Together, these factors reinforce the competitive positioning of strategically located, core market logistics clusters.
Prologis's operational scale reflects its market leadership. As of June 30, 2015, the company owned or held investments in approximately 670 million square feet of industrial real estate across 21 countries, either on a wholly owned basis or through co-investment ventures. The portfolio serves a diversified customer base exceeding 5,200 entities, spanning third-party logistics providers, transportation operators, retail enterprises, and manufacturers. This distribution-heavy customer base positions Prologis to benefit from secular demand growth driven by supply chain modernization and e-commerce penetration globally.
The Modern Logistics Concentration (MLC) and Modern Logistics Quotient (MLQ) indices represent the company's quantitative framework for assessing logistics clusters. These tools measure four key dimensions: cluster size, relative maturity, demand drivers, and growth potential. According to Chris Caton, senior vice president of Prologis Research, "Compiling a globally consistent dataset for logistics real estate and its associated demographics was a considerable undertaking." The analytical work enables identification of disparities between existing real estate supply and emerging demand generated by supply chain modernization.
The research findings underscore divergent market dynamics: sustained growth in developed economies coexists with disproportionately high demand in emerging markets, despite broader economic volatility in those regions. These insights reflect the intersection of three structural forces reshaping logistics real estate: evolving international trade patterns, technological innovation, and the continued expansion of e-commerce globally. Together, these factors reinforce the competitive positioning of strategically located, core market logistics clusters.
Prologis's operational scale reflects its market leadership. As of June 30, 2015, the company owned or held investments in approximately 670 million square feet of industrial real estate across 21 countries, either on a wholly owned basis or through co-investment ventures. The portfolio serves a diversified customer base exceeding 5,200 entities, spanning third-party logistics providers, transportation operators, retail enterprises, and manufacturers. This distribution-heavy customer base positions Prologis to benefit from secular demand growth driven by supply chain modernization and e-commerce penetration globally.
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