When Prologis CEO Hamid Moghadam speaks, the trade listens. Rents forecast to extend even additional subsequent yr, he says throughout an earnings name? It’s nearly as good as carried out. Warehouse growth will drop subsequent yr within the US? Individuals within the trade incorporate it into their planning.
And it’s little marvel. Prologis has a mammoth footprint within the area throughout the globe and this presence provides it entry to an immense quantity of information. We all know that, after all, however once in a while it’s useful to quantify simply how large that footprint is. Helpfully, Oxford Economics and Prologis have carried out that in a current report. “This research underscores the significance the logistics trade has on the worldwide financial system and the important nature of a fluid provide chain,” Moghadam says in ready remarks.
Let’s begin with the fundamentals: Prologis world operations embody roughly 1.2 billion sq. ft. In line with the report, 2.8% of the world’s gross home product flows by way of a Prologis property–or almost 3% of all items produced and bought globally got here by way of a Prologis logistics property in 2022. Or put one other means, $2.7 trillion of products produced or bought on the earth went by way of Prologis services in 2022, a 23% improve from 2020. That $2.7 trillion of products represents 4% of the GDP within the 19 nations through which Prologis operates, in comparison with 3.5% in 2020. (Prologis’ portfolio spanned 963 million sq. ft in 2020).
The products produced and bought that got here by way of a Prologis constructing characterize 2.8% of worldwide GDP, up from 2.5% in 2020. Within the US, the financial worth representing 36.2% of products consumption passes by way of a Prologis facility; 12% of products consumption passes by way of a Prologis facility in Europe.
Lastly, the report additionally famous that actions in Prologis services generate an estimated $66 billion in whole tax impacts from the estimated $300 billion in financial exercise in Prologis’ 19 nations of operation.
