The world’s largest developer of logistics properties is getting tougher about starting new warehouses, says The Wall Street Journal. Prologis says it is pulling back on speculative projects, or sites built without tenants already signed on, as the business braces for a potential economic downturn.

The real-estate investment trust is getting more cautious as the boom in distribution space shows signs of peaking after a strong growth pace during the pandemic.

Chief Financial Officer Tim Arndt says leasing activity has softened somewhat compared to the height of the pandemic, although overall demand remains strong by historic standards.

The warehousing sector has been one of the fastest growing industrial markets during the pandemic, as retailers rushed to buy up space to meet shifting demand from consumers. Retail trade appears to be retrenching, however, and merchants are getting more sophisticated at handling online fulfillment from their stores.