TAKEAWAYS
LOGISTICS REAL ESTATE RECALIBRATES
The global industrial and logistics market is among many sectors navigating turbulence and transformation. Amid shifting tari regimes, geopolitical tensions, and escalating customer demands, businesses are under growing pressure to adapt. In response, organizations that lease, own, or use industrial and logistics real estate—including warehouses, distribution centers, and manufacturing facilities—are rethinking their real estate strategies with a focus on resilience, agility, and future-proofing, finds a new report, 2025 Spotlight On The Industrial & Logistics Sector , from global real estate firm Savills. The report outlines several notable trends and shifts, including:
80% of respondents from the Savills global network report leasing decision delays driven by the shifting tari environment. In Asia Pacific, 40% of respondents report that planned capital investment projects are being delayed due to uncertainty in the market. Occupiers of industrial and logistics space are rethinking site selection criteria . While access to transportation infrastructure and labor remains critical, these priorities are weighed alongside growing power demands, the increasing need for smart, tech-enabled facilities, and a shift toward greater automation. Global cargo
volumes surged by 7.3% in 2024 , reaching 504.7 million twenty- foot equivalent
Global warehousing costs rose by 3.9% over the past year , marking the third consecutive year of slowing growth. This trend reflects a
market in transition, as post-pandemic momentum gives way to more cautious occupier behavior in the face of geopolitical and macroeconomic uncertainty. Increased supply in some markets also tempered rental increases. units (TEUs) across 50 of the world’s largest ports. While all regions saw growth, the greatest increases were in North America and China, partly due to shippers front-loading cargo in anticipation of potential tari changes. AI MOVES FROM HYPE TO IMPACT Source: Savills
From forecasting disruptions to optimizing order flows, artificial intelligence is fast becoming a cornerstone of modern supply chain strategy. Many organizations are turning to AI and other advanced technologies as essential components of day-to-day operations—but hurdles remain, according to PwC’s 2025 Digital Trends in Operations survey. The shift from AI as a buzzy concept to a necessary tool is reflected in the survey, which finds that 57% of supply chain leaders have now partially or fully integrated AI into their operations ( see chart, right ). Overall, AI integration levels vary widely among respondents, the survey shows. Companies are applying AI across a range of functions, including planning, order management, and real-time risk mitigation, according to the research. But while optimism is high—80% expect long-term value from AI—many are still navigating barriers to implementation, such as the complexity of legacy systems, and data quality issues. Additionally, the survey underscores a gap between ambition and operational execution; only 31% of respondents say they are actively piloting AI tools, despite their appreciation for its long-term value.
HOW ARE COMPANIES INTEGRATING AI? The survey asked respondents to describe how their company is approaching AI integration.
18% Fully integrated AI
9% Exploring opportunities Investigating AI technologies and assessing their potential for our business
AI is deeply integrated and actively driving decision- making or automation throughout our organization making throughout
13% Using embedded AI Using tools embedded into existing tools or systems
57% INTEGRATED AI
39% Partially integrated AI is integrated into select functions but not yet widespread across the organization Partially
21% Deploying standalone AI AI
In addition to the previous, implementing AI-driven solutions as standalone tools or systems to address specific needs
*Note: Totals may not add up due to rounding. Response to “Unsure” not shown. Source: 2025 Digital Trends in Operations , PwC
26 Inbound Logistics • July 2025
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