If further proof was needed of the health and increasing relevance of the logistics real estate sector it was provided last week in the publication by Prologis, the world’s largest owner of commercial warehouse space, of a report produced on its behalf by Oxford Economics.
In the report OE reveals that the current value of goods flowing through Prologis facilities globally is $2.2 trillion, about 2.5% of global GDP or 4.4% of global household consumption. This was 69% up on the 2017 figure.
Prologis chairman and CEO Hamid Moghadam commented that the study, “shows just how critical logistics real estate is to the vitality of the global economy.”
Prologis operates about one billion square feet or 92.9 million sq m, of warehouse space world wide.
The throughput as a proportion of host countries’ GDP is quite wide ranging, from 1.3% in Belgium, through 1.5% in Germany to 12.5% in Czech Republic. In the UK the $2.8 trillion of goods that flow through Prologis warehouses represents about 2.6% of the country’s GDP.
In absolute terms, the flow of goods passing through Prologis units is largest in the US at $21.4 trillion, representing 6.3% of the country’s GDP. China is the next most significant market in terms of volumes of goods flowing through Prologis buildings with $14.3 trillion, but comparatively speaking it barely touches the market, representing only 0.8% of GDP.
Employment is another measure of the significance of the logistics sector and in Prologis’s case 853,700 people are directly employed in its buildings world-wide.
The study also reveals that globally the economic activity accounted for by Prologis premises produces tax receipts of $55 billion for host countries. However, the $36 billion in tax revenue produced in the US dwarfs the $3bn returned in France and $2bn each in the UK, Germany, China and Netherlands.