On the desk today · Prologis
Every package you've ordered passed through a building they own. You've never seen any of them.
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Amazon's Landlord
Owns 1.3 Billion Square Feet
In 1983, an Iranian-born engineer with two MIT degrees and a Stanford MBA co-founded a small investment firm in San Francisco. His name was Hamid Moghadam. He had been looking at real estate — offices, retail, shopping centers — but he kept noticing something about warehouses near ports and airports. Nobody wanted them. They were unglamorous, tucked behind chain-link fences off highway exits. Investors chased flashier buildings downtown. Moghadam saw what they missed — every piece of merchandise moving through the global economy had to pass through a warehouse before it reached a store shelf or a customer's doorstep.
He started buying the warehouses nobody wanted.
I ordered something online last week. Nothing unusual — a pair of running shoes. They arrived in two days. I didn't think about what happened between the click and the doorbell. But the shoes traveled from a manufacturer to a distribution center, were picked and packed in a fulfillment warehouse, loaded onto a truck, and delivered to my front door. There is a very good chance that at least one of the buildings in that chain was owned by a company I had never heard of until I started pulling the thread.
That company is Prologis.
Most people have never heard the name. But Prologis is the largest industrial real estate company on earth. It owns approximately 1.3 billion square feet of warehouse and logistics space across 20 countries — roughly 6,000 buildings in total, leased to approximately 6,600 customers. Its single largest tenant is Amazon, which occupies 46 million square feet. An estimated $2.7 trillion in goods flow through Prologis buildings every year. That is roughly 2.8% of the world's GDP passing through one company's walls.
Moghadam co-founded AMB Property Corporation with Douglas Abbey in 1983 and took it public in 1997. In 2011, he merged AMB with its biggest competitor — a company actually called ProLogis — in a $5.6 billion deal that created the current entity. Then he went on an acquisition spree: DCT Industrial for $8.4 billion in 2018, Liberty Property Trust for $13 billion in 2020, and Duke Realty for $23 billion in 2022. Each deal added hundreds of millions of square feet. The portfolio compounded.
In fiscal 2025, Prologis signed a record 228 million square feet of leases. Core funds from operations — the cash flow metric REITs use in place of earnings — reached $5.81 per share, up 4.5% from the year before. Occupancy across the portfolio runs above 97%. And Prologis manages all of this with roughly 2,700 employees. That is 1.3 billion square feet — an area larger than the entire island of Manhattan — managed by a team smaller than a mid-size law firm.
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He Woke Up 79% Richer
It's the strangest way I know to make money in gold… You go to bed owning a small miner, and overnight, a major announces it's buying the company. No chart to time, no exit to nail — your shares simply reprice while you sleep. One quarter of my portfolio has already been acquired by the major gold miners in the space, with overnight pops as high as 79%. Best of all… the wave of buyouts has barely started.
That 97% occupancy rate is the number that matters most. Think about what it means — across 6,000 buildings in 20 countries, almost nothing sits empty. Warehouses are not optional for modern commerce. Every retailer, every manufacturer, every e-commerce company needs a place to store, sort, and ship goods. Prologis owns the best locations — the ones near ports, airports, highways, and dense population centers — and those locations cannot be replicated. You can't build a new warehouse next to the Port of Los Angeles if Prologis already owns the land.
The pricing power is embedded in the lease structure. Prologis signs long-term leases — typically five to seven years — with annual rent escalators built in. When a lease comes up for renewal, Prologis resets the rent to current market rates, which have been rising for over a decade as logistics demand has outpaced supply. In recent years, renewal spreads — the percentage increase between the old rent and the new rent on the same space — have run well above 50%. A tenant that signed a lease five years ago at $6 per square foot might renew today at $10. And the tenant signs anyway — because the alternative is moving an entire distribution operation to a worse location.
Dan Letter — who became CEO on January 1, 2026, succeeding Moghadam after more than 40 years — said it plainly in the fiscal 2025 earnings release: "2025 was a record year for lease signings, setting the business up with strong momentum for 2026. Customers are making long-term decisions with greater conviction, and we are meeting that demand with a platform that brings logistics, digital infrastructure and energy solutions together."
The flywheel runs on the physical world's dependence on proximity. E-commerce requires fulfillment centers near customers. Same-day delivery requires micro-distribution centers inside cities. Supply chain resilience requires additional inventory buffer in warehouses that didn't exist five years ago. And now, Prologis is expanding into data centers — using its portfolio of land and power connections to build the facilities that AI and cloud computing demand. In the third quarter of 2025, the company announced it had secured or was in advanced stages for 5.2 gigawatts of utility-fed power capacity for data center development. The warehouse company is becoming the infrastructure company. The land doesn't change. The use case multiplies.
WHY THIS WORKS
Location is the moat. Prologis owns the best logistics land near ports, airports, and population centers across 20 countries. You cannot build a competing warehouse where the land is already taken.
97% occupancy, rising rents. Leases run five to seven years with annual escalators. Renewal spreads above 50% mean the same building earns substantially more each time a lease resets.
$2.7 trillion in goods flow through. Global commerce depends on warehouses. Every package, every pallet, every container passes through a facility. Prologis owns more of those facilities than anyone else on earth.
2,700 people manage 1.3 billion square feet. The asset is concrete and steel. It doesn't break. It doesn't need much staff. It just collects rent — from 6,600 tenants, in 20 countries, every month.
Hamid Moghadam was born in Tehran in 1956. He came to the United States as a teenager, earned two engineering degrees from MIT and an MBA from Stanford, and spent 42 years building the largest logistics real estate company in the world. On January 1, 2026, he stepped aside as CEO and became executive chairman. The man who bought the warehouses nobody wanted — the unglamorous buildings behind chain-link fences — now controls a portfolio worth over $200 billion. Every time you tap "Place Order," a piece of your purchase price flows to a building Hamid Moghadam owns. You will never see the building. But the rent arrives every month, from 6,600 tenants, without fail.
