India Gains from China‑Plus‑One
Prologis executives flagged India as a primary beneficiary of 'China plus one' manufacturing shifts, redirecting logistics demand across global supply chains. That reallocation is already influencing 3PL and e‑commerce network planning, with implications for where multinational tenants choose to stage inventory. For gateway markets like the LA Basin, the trend may reshape demand composition rather than overall volumes. (x.com)
Prologis’ India head, Vineet Sekhsaria, said the company is seeing clear, project-level demand where manufacturers are diversifying away from China — especially in Tamil Nadu’s Chennai area — and Prologis has started construction on a new logistics and industrial park at Redhills in North Chennai with about 1.1 million square feet of development potential on a 51‑acre site. (economictimes.indiatimes.com) Prologis has secured roughly six million square feet of development potential in India and describes a multi‑phase Chennai campus of about 200 acres that could yield 4.4 million square feet, as the firm pursues both new developments and acquisitions across Delhi, Mumbai, Pune, Bengaluru and Chennai; Prologis has publicly signaled a multi‑year capital commitment for the market. (prologis.com) (economictimes.indiatimes.com) “China‑plus‑one” is a corporate sourcing strategy that keeps some China production but also adds manufacturing in another country to reduce concentration risk, and Prologis says that shift is translating into demand for modern logistics facilities located next to manufacturing corridors — facilities that support processes such as assembly, quality testing and distribution. (economictimes.indiatimes.com) Prologis research has previously quantified how higher inventory targets and resilience strategies could create hundreds of millions of square feet of incremental warehouse need (Prologis estimated a U.S. incremental need of roughly 270–700 million square feet if inventories rise 5–15 percent). (prologisce.eu) For U.S. gateway markets such as the Los Angeles Basin, Prologis’ port analysis shows the ports of Los Angeles and Long Beach are positioned to regain roughly half the market share they lost in 2022–2023 and could stabilize near about one‑third of U.S. container imports, which implies more frequent rebalancing of what types of space are leased (for example, more cross‑dock and last‑mile staging rather than a sustained jump in aggregate volume). (prologis.getbynder.com) Prologis’ operating results and deployment strategy underline how the company captures manufacturing‑linked demand: the firm reported record leasing (62 million square feet signed in Q3 2025) and a high share of build‑to‑suit activity—tools that landlords use to lock in large, manufacturing or 3PL tenants that need custom facilities — so landlords in the LA Basin should expect competing product to be skewed toward higher‑spec, tenant‑tailored builds rather than purely larger warehouse footprints. (prologis.com)
