Warehouse sector leader Prologis says it is bullish on demand this year even as vacancy rates tick upward and signs of a slowdown course through the economy. The Wall Street Journal reports that the company’s revenue rose by more than a third in the fourth quarter and that the average occupancy of its properties continued to edge higher, although earnings fell by more than half to $587.2 million. 

Broader industry measures show warehouse leasing has slipped and vacancy rates rose at the end of 2022. That suggests the red-hot demand during the pandemic has cooled off. 

But the declines are coming from record levels, and Prologis CFO Tim Ardt says conditions across the business “remain healthy.” Prologis remains cautious, however, saying it is pulling back from building new facilities without tenants already signed on.