Prologis, a leading warehouse-focused real estate investment trust based in San Francisco, reported strong growth in the third quarter of 2025. The company exceeded Wall Street expectations for both revenue and core funds from operations. Analysts had predicted modest growth, but Prologis outperformed due to robust leasing activity across its global portfolio.
During the quarter, Prologis signed a record 62 million square feet of new leases. This represents one of the highest levels of warehouse leasing in the company’s history. The strong demand reflects a growing need for logistics and distribution space, fueled by the expansion of e-commerce and supply chain modernization.
The company’s Chief Executive Officer highlighted that tenants are seeking modern, strategically located warehouses to support faster delivery and efficient inventory management. “The demand for well-located logistics space continues to rise, and our results show the strength of this trend,” the CEO said.
Prologis operates thousands of properties worldwide, offering warehouse and industrial spaces to a range of clients, including retailers, manufacturers, and third-party logistics providers. The company’s portfolio strategy focuses on high-demand markets with access to major transport routes and urban centers.
Leasing activity was particularly strong in North America, where companies are expanding distribution networks to meet customer expectations for rapid delivery. In addition, Prologis saw continued growth in Europe and Asia, driven by industrial and e-commerce expansion.
Experts in commercial real estate note that the surge in warehouse leasing is part of a broader trend in global logistics. Businesses are increasingly investing in supply chain infrastructure to improve resilience and reduce transit times. This trend is expected to sustain high leasing levels for several more quarters.
Prologis also reported that its revenue exceeded analyst projections for the quarter. Core funds from operations, a key metric for real estate investment trusts, also came in higher than expected. These results underscore the company’s ability to capitalize on strong market demand while maintaining operational efficiency.
Investors responded positively to the news, sending Prologis shares higher following the earnings release. The company’s strong performance highlights the value of investing in modern logistics infrastructure amid growing e-commerce and supply chain needs.
Looking ahead, Prologis plans to continue expanding its footprint in high-demand logistics hubs. The company aims to meet tenant demand with modern, flexible, and well-located warehouse space. Analysts expect leasing momentum to remain robust as businesses continue to adapt to shifting consumer behaviors and supply chain requirements.
With record lease signings and strong revenue growth, Prologis demonstrates resilience in a competitive industrial real estate market. Its focus on high-quality logistics properties and strategic expansion positions the company for sustained success in 2025 and beyond.
Warehouse leasing demand remains a key driver for industrial real estate, and Prologis’ performance reflects the continued importance of modern logistics infrastructure. Companies seeking faster delivery and operational efficiency are fueling this growth, making warehouse space a valuable asset in today’s market.
