20 Months Free Rent: Lock Warehouse Leases Before Q4 2026
20 months of free rent at $3.70/sq ft on a 10-year lease—that's cash flow straight to your bottom line while competitors lock in at market rates. Landlords sitting on empty buildings for 2+ years are desperate to deal, but Prologis forecasts the market flipping landlord-favorable by Q4 2026. If you're expanding, the next 6-9 months is your window to turn real estate from a cost center into a competitive weapon.
“We see a 6-9 month arbitrage window where real estate moves from fixed cost to cash flow advantage. At $3.70/sq ft with 20 months free on a 100K sq ft facility, that's roughly $617K in rent savings over the free period alone—money that flows directly to operating margin while competitors pay market rates.”
20 months of free rent at $3.70/sq ft on a 10-year lease—that's cash flow straight to your bottom line while competitors lock in at market rates. Landlords sitting on empty buildings for 2+ years are desperate to deal, but Prologis forecasts the market flipping landlord-favorable by Q4 2026. If you're expanding, the next 6-9 months is your window to turn real estate from a cost center into a competitive weapon.
From the Source
"It's cash flow straight to the bottom line... There's buildings that are 300,000 square feet we could go in and take a piece of for your anchor customer and have all the rights to the rest of the space."
— 3PL Real Estate Strategies for 2026 Growth
Key Takeaways
- 01Current deals hitting $3.70/sq ft net with 20 months free rent on 10-year leases—unprecedented concessions
- 02Landlords carrying empty buildings 2+ years with expensive post-COVID debt are starving to ink deals
- 03Prologis earnings call moved up their forecast—Q4 2026 is when rents start climbing again
- 04Activity is picking up nationwide (Miami to LA)—deals are trading paper, absorption will follow fast
- 05Long-term leases signed now lock in below-market rates for a decade while the market recovers
Watch the Source
3PL Real Estate Strategies for 2026 Growth
Source
3PL Real Estate Strategies for 2026 Growth
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