The pandemic pushed brick-and-mortar retailers to jump on the e-commerce bandwagon fast — but even as that slows, fears that retailers are pulling back on their warehouse space are premature, Prologis CEO Hamid Moghadam tells Axios.

Why it matters: Investors have been trying to read the tea leaves on whether Amazon could be a bellwether for the rest of the e-commerce space. The giant spooked the market in April with its decision to cut back on its warehouse space, and sublease 10 million square feet.

Catch up fast: Prologis agreed to acquire Duke Realty last week, adding another 160 million square feet of space in 19 major U.S. logistics markets to its 1 billion square foot global network.

Between the lines: Warehouse space is an extremely fragmented business, with the majority of the market in the hands of companies that have a few properties, he says. He expects to see those businesses continue to consolidate or grow.

State of play: While the pandemic was a boost for e-commerce, it also disrupted supply chains and upended the way businesses think about their inventories.

What to watch: AR, VR and the improvement of the customer experience online should really help drive e-commerce penetration further, he says. Returns have cost retailers billions of dollars. This will help solve that, he adds.