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Prologis ramps speculative industrial development as demand firms
The logistics landlord said it could double its development pipeline by year end after logging 67M SF of leases in the second quarter.
Prologis is accelerating new industrial development as leasing demand strengthens and vacancy pressure eases, a trend tied to resurgent tenant requirements for large logistics space. Bisnow reports that speculative projects are returning as lenders become more willing to back new construction amid tighter market conditions.
According to the outlet, Prologis broke ground on more new developments in the first half of the year than it did across all of 2025, and the company does not plan to slow down. Executives said Prologis could double its development pipeline by year end, citing 67M SF worth of leases completed in the second quarter.
Bisnow also pointed to broader momentum in the U.S. industrial sector, saying industrial space under construction rose 10% year over year to 312M SF. Colliers data referenced by the outlet showed development starts increasing in each of the last three quarters, including speculative facilities larger than 200K SF.
Prologis reported breaking ground on 5.7M SF in the second quarter, with 75% designated build-to-suit, and it highlighted key growth markets including Dallas-Fort Worth, Houston and Austin. The company’s CFO Tim Arndt said Prologis had started $3.1B of construction year to date and is targeting total starts between $5B and $6.5B by year end, including data center operations.