{"id":1004755320,"date":"2025-04-23T03:27:43","date_gmt":"2025-04-23T11:27:43","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004755320"},"modified":"2025-05-02T04:37:22","modified_gmt":"2025-05-02T12:37:22","slug":"what-global-trade-shifts-mean-for-us-industrial","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/what-global-trade-shifts-mean-for-us-industrial\/","title":{"rendered":"What Global Trade Shifts Mean for US Industrial"},"content":{"rendered":"\n<p>Despite uncertainty stemming from federal tariffs imposed on China and other nations, a new Prologis report argues that most logistics demand in the U.S. has been insulated from ensuing shocks. That\u2019s because about three-quarters of mentioned demand is tied to regional and local distribution meant to handle domestic consumption, and is less impacted by changes in trade flows.<\/p>\n\n\n\n<p>The report, the first in a series on the impacts of global trade policy on logistics real estate, found that because of the pivot made more than a decade ago to focus on domestic consumption and regional distribution rather than global trade, import exposure is lower than it appears in the U.S.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity has-very-light-gray-to-cyan-bluish-gray-gradient-background has-background is-style-wide\"\/>\n\n\n\n<p><strong>READ ALSO:<\/strong> <a href=\"https:\/\/www.commercialsearch.com\/news\/industrials-new-groove-gradual-growth-and-tariff-talks\/\">Industrial\u2019s New Groove: Gradual Growth and Tariff Talks<\/a><\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity has-very-light-gray-to-cyan-bluish-gray-gradient-background has-background is-style-wide\"\/>\n\n\n\n<p>With approximately 75 percent of the logistics demand tied to the consumption end of the supply chain, 15 percent is trade specific and the remaining 10 percent is from manufacturing, services, research and development and other uses. <\/p>\n\n\n\n<p>Even high-profile, trade-oriented hubs such as ports and intermodal facilities are focused around domestic consumption including e-commerce fulfillment, retail restocking and food and beverage distribution. The growing demand for last-mile delivery and rise of just-in-case inventory strategies have added to this trend.<\/p>\n\n\n\n<p>\u201cIndustries weighted by logistics real estate footprints skew toward essentials and domestic sourcing, with limited reliance on China and high-price inelasticity,\u201d the report stated.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-some-industrial-markets-feeling-the-pinch-of-trade-tariffs\">Some industrial markets feeling the pinch of trade tariffs<\/h2>\n\n\n\n<p>However, Prologis notes there are several U.S. trade-oriented markets, including Savannah, Ga.; Memphis, Tenn.; and Charleston, S.C., that are highly exposed to global trade. Calling them import-heavy markets, Melinda McLaughlin, vice president &amp; global head of research at Prologis, noted that they face outsized risks to shifts in trade policy due to their smaller populations. <\/p>\n\n\n\n<figure data-wp-context=\"{&quot;imageId&quot;:&quot;6a0b6e67981a2&quot;}\" data-wp-interactive=\"core\/image\" class=\"wp-block-image size-full wp-lightbox-container\"><img loading=\"lazy\" decoding=\"async\" width=\"1920\" height=\"1080\" data-attachment-id=\"1004755322\" data-permalink=\"https:\/\/www.commercialsearch.com\/news\/what-global-trade-shifts-mean-for-us-industrial\/chart-modern-logistics-concentration-by-market-demand-profile\/\" data-orig-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/04\/Chart-Modern-Logistics-Concentration-by-Market-Demand-Profile.jpeg\" data-orig-size=\"1920,1080\" data-comments-opened=\"0\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;1&quot;}\" data-image-title=\"Chart Modern Logistics Concentration by Market Demand Profile\" data-image-description=\"\" data-image-caption=\"\" data-large-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/04\/Chart-Modern-Logistics-Concentration-by-Market-Demand-Profile.jpeg?w=1024\" data-wp-class--hide=\"state.isContentHidden\" data-wp-class--show=\"state.isContentVisible\" data-wp-init=\"callbacks.setButtonStyles\" data-wp-on-async--click=\"actions.showLightbox\" data-wp-on-async--load=\"callbacks.setButtonStyles\" data-wp-on-async-window--resize=\"callbacks.setButtonStyles\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/04\/Chart-Modern-Logistics-Concentration-by-Market-Demand-Profile.jpeg\" alt=\"Industrial market demand profiles across major U.S. metros, by Prologis\" class=\"wp-image-1004755322\" srcset=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/04\/Chart-Modern-Logistics-Concentration-by-Market-Demand-Profile.jpeg 1920w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/04\/Chart-Modern-Logistics-Concentration-by-Market-Demand-Profile.jpeg?resize=300,169 300w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/04\/Chart-Modern-Logistics-Concentration-by-Market-Demand-Profile.jpeg?resize=768,432 768w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/04\/Chart-Modern-Logistics-Concentration-by-Market-Demand-Profile.jpeg?resize=1024,576 1024w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/04\/Chart-Modern-Logistics-Concentration-by-Market-Demand-Profile.jpeg?resize=1536,864 1536w\" sizes=\"auto, (max-width: 1920px) 100vw, 1920px\" \/><button\n\t\t\tclass=\"lightbox-trigger\"\n\t\t\ttype=\"button\"\n\t\t\taria-haspopup=\"dialog\"\n\t\t\taria-label=\"Enlarge\"\n\t\t\tdata-wp-init=\"callbacks.initTriggerButton\"\n\t\t\tdata-wp-on-async--click=\"actions.showLightbox\"\n\t\t\tdata-wp-style--right=\"state.imageButtonRight\"\n\t\t\tdata-wp-style--top=\"state.imageButtonTop\"\n\t\t>\n\t\t\t<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"12\" height=\"12\" fill=\"none\" viewBox=\"0 0 12 12\">\n\t\t\t\t<path fill=\"#fff\" d=\"M2 0a2 2 0 0 0-2 2v2h1.5V2a.5.5 0 0 1 .5-.5h2V0H2Zm2 10.5H2a.5.5 0 0 1-.5-.5V8H0v2a2 2 0 0 0 2 2h2v-1.5ZM8 12v-1.5h2a.5.5 0 0 0 .5-.5V8H12v2a2 2 0 0 1-2 2H8Zm2-12a2 2 0 0 1 2 2v2h-1.5V2a.5.5 0 0 0-.5-.5H8V0h2Z\" \/>\n\t\t\t<\/svg>\n\t\t<\/button><figcaption class=\"wp-element-caption\">Prologis looks at industrial market demand profiles across major U.S. metros, a possible harbinger in terms of resilience against trade tariff turmoil. <em>Chart courtesy of Prologis<\/em><\/figcaption><\/figure>\n\n\n\n<p>About 75 percent of the customer operations in markets like these are related to international flows rather than also providing local and regional distribution. By comparison, ports in high-population markets such as Southern California, the San Francisco Bay Area and New York-New Jersey, are considered economic powerhouses and multi-purpose locations serving both consumption and trade flows.<\/p>\n\n\n\n<p>\u201cBecause of the way their economies have developed, they also have this massive local consumption and they\u2019re also well-positioned to distribute to other markets,\u201d McLaughlin told <em>Commercial Property Executive<\/em>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-uncertainty-creates-pauses-challenges\">Uncertainty creates pauses, challenges <\/h2>\n\n\n\n<p>The report outlines several short-term impacts. These mainly stem from <a href=\"https:\/\/www.commercialsearch.com\/news\/what-trumps-tariffs-could-mean-for-cre\/\">uncertainty from the policies<\/a> rather than the tariffs themselves, as customers delay decisions on long-term investments. Prologis is seeing slowing leasing activity and more interest in shorter, more flexible terms.<\/p>\n\n\n\n<p>During the April 16 first-quarter 2025 earnings call with analysts, Prologis CFO Tim Arndt said the company experienced a roughly 20 percent drop in leasing in the two weeks following the president\u2019s April 2 tariff announcement. But he noted the deals\u2014representing about 80 leases and more than 6 million square feet\u2014also \u201creflect a market that\u2019s still active.\u201d<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity has-very-light-gray-to-cyan-bluish-gray-gradient-background has-background is-style-wide\"\/>\n\n\n\n<p><strong>READ ALSO:<\/strong> <a href=\"https:\/\/www.commercialsearch.com\/news\/what-cre-investors-want-to-buy-in-2025\/\">What CRE Investors Want to Buy in 2025<\/a><\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity has-very-light-gray-to-cyan-bluish-gray-gradient-background has-background is-style-wide\"\/>\n\n\n\n<p>The situation is also driving demand for flexible solutions with companies pursuing overflow space, third-party logistics assistance and Foreign Trade Zones as stopgap tools to navigate the volatility, <a href=\"https:\/\/www.prologis.com\/insights\/global-insights-research\/trade-flux-what-global-shifts-mean-us-logistics-real-estate\">according to the white paper<\/a>.<\/p>\n\n\n\n<p>McLaughlin said the uncertainty also presents a \u201cchallenge\u201d to decision making. She added some long-term decisions are likely on pause because, \u201cYou don&#8217;t have all the facts to look into the future and make long-term investments.\u201d For example, those considering moving manufacturing back to the U.S. would face a two- to five-year process, she estimated.<\/p>\n\n\n\n<p>\u201cI think we\u2019ll definitely see some more thoughtful and deliberate decision making,\u201d McLaughlin said.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Prologis takes a close look at what can keep demand healthy.<\/p>\n","protected":false},"author":1068,"featured_media":1004755327,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21808,21748,21783,23891,21742,51037],"tags":[48587,32956,52598],"class_list":["post-1004755320","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-industrial","category-investment","category-national","category-latest","category-trends","tag-melinda-mclaughlin","tag-prologis","tag-tim-arndt"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.4 (Yoast SEO v24.6) - 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Gail has been a freelance writer and editor for more than 20 years, contributing to daily websites, magazines, weekly business newspapers, market intelligence newsletters, research reports, monthly B-to-B and consumer magazines. Earlier in her career, Gail worked for Gannett Corp. as an editor and reporter for 15 years. Gail has a bachelor\u2019s degree in journalism from Pace University.","url":"https:\/\/www.commercialsearch.com\/news\/author\/gail-kalinoski\/"}]}},"jetpack_featured_media_url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/04\/Chart-Modern-Logistics-Concentration-by-Market-Demand-Profile-1-e1745407399776.jpeg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004755320","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/users\/1068"}],"replies":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/comments?post=1004755320"}],"version-history":[{"count":5,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004755320\/revisions"}],"predecessor-version":[{"id":1004756581,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004755320\/revisions\/1004756581"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/media\/1004755327"}],"wp:attachment":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/media?parent=1004755320"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/categories?post=1004755320"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/tags?post=1004755320"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}