SAN FRANCISCO, Nov. 19, 2015 /PRNewswire/ -- Prologis, Inc. (NYSE: PLD), the global leader in industrial real estate, today published new research on the trends now shaping commercial real estate development in the United States.
The latest paper from Prologis Research--"A New Supply Paradigm: Five Trends Shaping Real Estate Development"--identifies five factors that are leading to a more disciplined development cycle compared to past cycles. These factors include:
- Consolidation and institutionalization: movement toward larger-scale institutions as key players
- Greater aversion to and a measured appetite for risk: changing attitudes by institutions--both on the equity side and the debt side
- New lending constraints: expanded banking regulations and a preference for relationship lending and institutional borrowers
- Tighter talent pool: a shortage of real estate professionals with relevant development expertise
- Better access to industry information: the ability to approach opportunities and risks proactively and in real time
"The great recession laid the groundwork for more conservatism on new commercial development in the U.S.," said Chris Caton, senior vice president, Prologis Research. "Today, key players are more disciplined and are in a better position to respond to shifting market dynamics."
Prologis, Inc. is the global leader in industrial real estate. As of September 30, 2015, Prologis owned or had investments in, on a wholly owned basis or through co-investment ventures, properties and development projects expected to total approximately 671 million square feet (62 million square meters) in 21 countries. The company leases modern distribution facilities to more than 5,200 customers, including third-party logistics providers, transportation companies, retailers and manufacturers.
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SOURCE Prologis, Inc.