Steve Sacqua's questions to Prologis (PLD) leadership • Q3 2025
Question
Steve Sacqua asked about the expected equilibrium of supply and demand over the next year and the expectations for market rent growth in the next 12 months.
Answer
President Dan Letter described the market as a classic real estate cycle with strengthening demand from large customers and low supply (below pre-COVID levels). Managing Director Chris Caton added that the new direction in demand in Q3 was key, noting 95 million square feet of net absorption year-to-date, projecting 125 million for the full year. Vacancy rates are expected to top out around current levels (7.5%), with deliveries declining into 2026 due to a 190 million square feet under-construction pipeline.