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CNBC Investing Club Bets on Prologis Amid Economic Uncertainty

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  Published in Stocks and Investing on Friday, February 27th 2026 at 16:18 GMT by CNBC
      Locales: Delaware, New York, California, UNITED STATES

Friday, February 27th, 2026 - CNBC's Investing Club, guided by Jim Cramer's 'Bullpen' investment strategy, today announced the addition of Prologis (PLX), a leading real estate investment trust (REIT) focused on logistics facilities, to its portfolio. This move signals a strategic bet on the enduring strength of the global supply chain and a belief that certain real estate sectors can weather both economic storms and the disruptive forces of artificial intelligence.

The 'Bullpen' strategy, as championed by Cramer, prioritizes identifying companies with demonstrably robust fundamentals - strong balance sheets, consistent profitability, and a sustainable competitive advantage. Crucially, these are companies expected to outperform during periods of economic contraction and technological upheaval, not just survive. In a world increasingly concerned about potential recessions and the rapid advancement of AI, this selective approach is gaining traction with investors.

Prologis, with its expansive network of warehouses and distribution centers, appears to fit this profile remarkably well. The company isn't simply benefiting from current economic conditions; it's positioned to capitalize on long-term structural shifts. The ongoing boom in e-commerce, accelerated by the pandemic and now ingrained in consumer behavior, necessitates a vastly expanded and sophisticated logistics network. Prologis provides precisely that.

But the rationale goes beyond simply benefitting from increased online shopping. Global supply chains have become demonstrably more complex in recent years, driven by geopolitical instability, the desire for diversification (reducing reliance on single-source manufacturing), and the rise of 'just-in-case' inventory management. This complexity demands more warehousing space, strategically located, and equipped to handle the intricacies of modern logistics. Prologis's extensive footprint, spanning North America, Europe, and Asia, places it at the heart of these evolving networks.

Furthermore, the Investing Club's decision acknowledges the often-overlooked interplay between real estate and technological innovation, specifically AI. While some fear that AI and automation will eliminate the need for warehouse space - robots replacing human workers and optimizing inventory - the reality is likely more nuanced. AI is expected to increase the efficiency of warehouse operations, allowing for faster throughput, reduced errors, and more precise inventory control. However, this increased efficiency will likely lead to more goods being processed, requiring additional space to accommodate the increased volume. Prologis is already integrating smart building technologies into its facilities, positioning itself to benefit from, rather than be disrupted by, AI.

"We see Prologis as a vital artery in the global economy," stated a source within the CNBC Investing Club, speaking on background. "Their assets are strategically located, high-quality, and in constant demand. Their pricing power - the ability to maintain or even increase rents - is a key indicator of their resilience. Even if we enter a recession, the need for efficient logistics won't disappear; in fact, it might increase as companies prioritize streamlining operations."

The REIT's consistent performance and dividend yield are also attractive features for investors seeking income and stability. REITs, by their structure, are required to distribute a significant portion of their taxable income to shareholders as dividends, making them a potentially reliable source of passive income. Prologis's track record in this regard further reinforces its appeal.

The addition of Prologis isn't without potential risks. Rising interest rates could impact the REIT's borrowing costs and potentially depress asset values. Overbuilding in certain markets could also lead to increased competition and downward pressure on rents. However, the Investing Club appears confident that Prologis's strong fundamentals and strategic positioning will mitigate these risks.

The company's commitment to sustainability also plays a role. Increasingly, companies are prioritizing environmentally responsible supply chains, and Prologis is investing in green building technologies and renewable energy sources to reduce its carbon footprint. This aligns with growing investor demand for ESG (Environmental, Social, and Governance) focused investments.

Investors interested in learning more about the CNBC Investing Club's 'Bullpen' portfolio, including a detailed breakdown of the rationale behind the Prologis addition, can find more information [ here ]. It's crucial to remember that all investments carry risk, and investors should conduct their own due diligence before making any decisions.

This move by CNBC's Investing Club is a strong signal that logistics real estate is a sector to watch in the years ahead, particularly as the world navigates economic uncertainty and the transformative power of artificial intelligence.