Melinda McLaughlin, global head of research at Prologis, Inc. (NYSE: PLD), joined the REIT Report to review major supply chain trends expected for 2026.
McLaughlin discussed the performance of international logistics markets, the impact of e-commerce on leasing demand, the growing power needs of logistics facilities, emerging trends in defense-related demand, and the challenges faced by the trucking industry.
The conversation highlighted the need for adaptability in supply chains as companies navigate a changing landscape. “I think there's an acknowledgement that supply chains need to be adaptable rather than continue to wait for perfect information. And I think that's really going to shape a return to normal in a lot of different spheres of the logistics real estate market,” McLaughlin said.
During the interview, McLaughin noted that:
- A more “normal” balance is emerging for logistics demand between inland and coastal hubs.
- Prologis expects international logistics markets to outperform in 2026.
- Europe is experiencing tightness in logistics markets due to structural factors.
- Brazil is seeing historical lows in vacancy rates, leading to fast rent growth.
- India's demographic profile is driving significant demand for logistics.
- Logistics facilities are facing increasing power needs due to automation and technology.
- Defense-related demand is emerging as a significant trend in logistics real estate.
- Labor challenges are impacting the trucking industry, affecting logistics operations.