Prologis Boosts 2026 Forecast on Strong Warehouse Leasing Momentum

Key Details Prologis reported record warehouse leasing activity in the first quarter, signing 64 million square feet of new logistics contracts. The real estate investment trust's development pipeline hit an all-time high despite these strong signings, signaling robust continued demand across major markets like Dallas, Houston, and Atlanta. Why It Matters The company's 98% occupancy rate for properties exceeding 500,000 square feet indicates rents are poised to increase further. With the U.S. construction pipeline at just 1.7% of supply compared to a 10-year average of 2.6%, supply constraints should continue supporting your freight operations and warehouse access. Financial Performance Prologis delivered first-quarter revenue of $2.3 billion, up 7% year-over-year and beating expectations. Core funds from operations reached $1.50 per share, exceeding analyst projections. The company increased its 2026 core FFO guidance to a range of $6.07 to $6.23 per share. Expansion Confidence New development starts totaled $2.1 billion in Q1, with 75% of logistics projects started speculatively. This reflects management's confidence in market fundamentals even amid geopolitical tensions and elevated energy costs. Average occupancy improved to 95.3%, outperforming the broader U.S. market vacancy rate of 7.5%.