By Matt Wirz

One of many sectors hit hard by the trade war: warehouse managers. Real estate investment trust Prologis's shares have tumbled about 12% since April 2, while CBRE Group's stock has declined 8%.

Firms that specialize in warehouses thrived in recent years as consumer consumption and corporate supply chains changed after the pandemic. Massive retailers like Amazon and Walmart developed increasingly complex logistics networks and needed storage space to run them. So-called industrial REITS like Prologis and CBRE outperformed competitors with heavy exposure to offices and conventional storefronts.

Now the concentration on logistics could become a weakness if the Trump administration holds firm on recently announced tariffs and international trade slows. With fewer goods being shipped from overseas, less storage will be needed domestically, leaving large warehouse landlords with excess capacity, according to analysts.

Prologis leases out 1.3 billion square feet of logistics properties in North and South America, Europe and Asia, according to the company's annual statement. In a description of potential risks to investors, the company highlighted "economic instability, including government shutdowns and withdrawals from the European Union or other international trade alliances or agreements."

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April 04, 2025 12:47 ET (16:47 GMT)

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