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- Prologis, a major global logistics company, said it's "effectively sold out" of warehouse space.
- In its quarterly earnings Friday, Prologis said soaring demand led to "record increases" in rent.
- The real estate scarcity comes amid growing global supply chain issues.
Commercial real estate and logistics giant Prologis said during its quarterly earnings Friday that its warehouses are essentially full amid growing strain on the global supply chain.
"With vacancies at unprecedented lows, space in our markets is effectively sold out," Prologis CEO Hamid Moghadam said in a press release.
Prologis reported average occupancy rates for the third quarter of 96.6%, up 0.6% from the previous quarter, with 98% of its properties leased as of September 30.
As a result of "structural forces driving demand," Moghadam said, Prologis saw "record increases in market rents and valuations" during its third quarter.
The company's net effective rent spiked 27.9% compared to the second quarter of this year.
Following its earnings report, shares of Prologis rose on Friday to close up 0.9% at $136.98.
Prologis' announcement about its limited warehouse supply comes amid issues throughout the supply chain, including massive labor shortages and port backlogs.
Prologis CFO Tom Olinger told investors Friday that while he expects the supply chain issues to be "temporary," it will likely be a "two-year or three-year type of process before everything straightens out."