Prologis Sees Leasing Activity Accelerate, Driven by Data Centers

Prologis expects its third-quarter lease signings to be near recent records of 60 to 65 million square feet, supported by improving occupancy and faster customer decisions. Data centers are a major growth driver for the company, accounting for about 10% of new leasing activity. The company has also advanced 5.8 gigawatts of power capacity and started roughly $4 billion in data-center build-to-suit projects.

Prologis noted a 17% lease mark-to-market gap, which represents potential incremental revenue of about $700 million. This positive outlook is supported by strong leasing volumes and positive market rent growth.