Due to tariffs, supply chain issues and high costs, logistics market indicators have been on a downward trend since 2023. However, those indicators, see “Logistics Real Estate Demand Turns a Corner” including new leases and utilization are now heading back up.

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The Prologis report concludes, “Demand outlook has clearly become more constructive, with customers increasingly advancing strategic leasing decisions. As in a typical real estate cycle, these actions reflect growing confidence and a reassessment of network priorities by the most well-resourced and resilient customers.”

As supply chain and logistics businesses continue to seek the best value for their operations, traditional hubs will see renewed investment while new locations will become more popular, offering low-cost land and facilities, tax incentives, and booming connectivity. 

The Best Places for US Logistics

Indianapolis, aka America’s crossroads, remains one of the rising stars for US logistics. Recent activity has seen hubs expanding and international cargo routes expanding with a new route to Dublin, Ireland recently opened. 

Indiana is also among the top 10 cheapest states to buy a house making it an attractive destination for workforces. As an appealing mid-size city, with a population of under a million, it maintains a homely culture, while providing a vibrant, family-friendly lifestyle. 

Even with advanced robotic warehousing, the rise of automated trucking systems and other industrial changes, Indianapolis has an abundance of high-touch industries like pharma, ecommerce and developing infrastructure to continue strong growth. 

Rising Like A Phoenix

Providing strong growth for the west coast, Phoenix, Arizona, continues to attract investment from technology and industrial firms as an alternative to costly California. That drives strong logistics growth and investment, becoming a key route for Chinese markets. 

Amazon is a key partner in driving growth, and infrastructure improvements like the Loop 303 and I-17 connection and the Union Pacific yard upgrades will continue to improve logistics performance. With high population growth, the state is also developing strong local demand. Arizona State University’s business school also has a high-quality logistics programme, creating local logistics talent.

In the eye of a perfect storm for logistics growth, Phoenix will continue to attract investment and operations as a reliable and affordable location well into the second half of the century. 

Strong Trade Winds Benefit Jacksonville

As cargo shipping continues to rebound, Jacksonville, Florida is perfectly positioned to serve the southeast US market with strong logistics connections for the east coast. A key hub for aviation and aerospace, there is also the need to serve the booming Florida populations, and Jacksonville has lower-cost land compared to the state’s more glamorous destinations. 

Jacksonville also continues to benefit from the east coast trade shift, as global trade winds adjust to over-congestion in the west, with strong bulk, container and auto handling growth predicted at the port across the rest of the decade.

Driven by cargo growth, Jacksonville has the space and transport links to deliver strong hub growth, and for a city already billed as “America’s Logistics Hub”, it will continue to attract investment and development for future expansion. 

Columbus at the Heart of US Logistics

Blessed with a geographic central location in the US, Columbus, Ohio is home to many industries that require strong logistics and transport routes, both within the US and globally. That makes it a natural target for growth as supply chains evolve, and economic demand drives the need for scale and expansion.

Recent examples include the ever-expanding Rickenbacker Global Logistics Park and one of the US’s newest and most modern warehouses at DSV. Such growth will continue to attract further investment and logistics knowledge as Columbus continues to attract major clients and capture business from smaller locations. 

With these and similar major hubs attracting so much commercial activity and investment, there is a struggle for smaller locations to generate the gravity to rise up the growth charts. However, locations like South Carolina and Georgia are making headway due to their locations and connections to the rest of the US. 

Savannah is a popular growth hub based on the increasing trade from the port and efforts to transform the local economy to think globally. As logistics continues to automate, the industry will become less reliant on human capital and more focused on simple and automated routes to markets that require stronger Internet of Things connectivity. 

Even with technology, Savannah is putting in the marketing and industrial hard yards by building a curated global business network, developing strategic partnerships and trade leads. It is also focused on higher-value corporate and warehouse tenants while driving a community of like-minded cities and regions working to grow trade.

That hearts-and-minds approach adds value to growing hubs that a pure numbers-focused effort cannot match and should act as an example to other centers aiming for high growth.