If the logistics real estate market faced a "minor test" in 2024, the latest data suggests the results are being quietly rewritten. The most recent ProLogis Industrial Business Indicator (IBI) report indicates that demand for logistics properties may have bottomed out, with an inflection point approaching.
The third quarter IBI Activity Index reached 53, reflecting comprehensive improvement in net absorption, new lease signings, and pipeline project reserves—all exceeding 2024 averages—signaling gradual restoration of market confidence.
The IBI Index serves as a key benchmark for logistics real estate market activity. While supply chain operations peaked in early 2025 before moderating due to trade fluctuations, the data reveals a nonlinear recovery trajectory. Large corporations and e-commerce giants are leading the rebound, with other industries expected to follow.
Three primary factors contributed to the Q3 IBI increase: Rising net absorption demonstrates growing demand for existing logistics space as companies expand or optimize supply networks. Increased new lease commitments reflect corporate optimism about economic prospects. Meanwhile, expanding project pipelines indicate future supply will meet growing market needs.
The report highlights divergent recovery speeds across industries and regions. Large enterprises and e-commerce platforms with stronger financial resources and operational agility are adapting faster to market shifts. Other sectors may require extended strategic adjustments before returning to growth.
As global economic recovery progresses and consumer demand persists, the logistics property market is poised for expansion. Companies should monitor market dynamics closely while adjusting operational strategies. The report also suggests governments could support development through infrastructure investment and improved business environments.
While challenges remain, the latest IBI data offers cautious optimism for the logistics real estate sector's gradual recovery and future growth potential.