Prologis estimates that approximately 30% of modern warehouse space globally already utilized automation technologies in 2025, compared with only 20–25% five years earlier. The continued growth is being driven by labor shortages, rising operational costs, e-commerce expansion, and the need for greater efficiency across supply chains.

A key trend identified in the report is the increasing adoption of flexible automation solutions such as autonomous mobile robots (AMRs), automated guided vehicles (AGVs), automated storage and retrieval systems (AS/RS), and AI-powered warehouse management technologies. These systems can often be integrated into existing operations more easily than traditional fixed automation infrastructure.

Contrary to concerns that automation could reduce warehouse demand, Prologis argues that the opposite is occurring. Companies investing in automation increasingly require modern facilities capable of supporting advanced technologies, including higher floor load capacities, specialized layouts, enhanced power infrastructure, and sophisticated digital connectivity. As a result, automation is strengthening demand for high-quality logistics assets rather than reducing space requirements.

The research also indicates that automated facilities deliver benefits for both occupiers and property owners. Companies operating automated warehouses tend to sign longer leases and are more likely to renew contracts, while landlords benefit from stronger tenant retention and higher asset values. According to Prologis, rental rates for automated facilities can be approximately 10% higher than for comparable non-automated properties in similar markets.

Automation is expected to become increasingly important as logistics operators seek to improve productivity and address ongoing workforce challenges. Industry analysts predict that future warehouse developments will be designed with automation and artificial intelligence in mind from the outset, creating more flexible and efficient logistics environments.

For warehouse developers and investors, the trend reinforces the importance of constructing modern facilities that are capable of accommodating evolving automation technologies. As logistics operations become more technology-driven, automation readiness is likely to become a key factor influencing occupier demand and long-term asset performance.

Source: Prologis Research