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Logistics Marketbeat Report 2023 H1

24/08/2023
OUTLOOK
  • Expect vacancy to remain low in regional cities: A pocket of weakness exists in Keno-do / Tohoku-do, as geographical expansion toward outer areas becomes harder to justify as more logistics providers are consolidating their fulfilment centers. Conversely, regional cities remain underserved, with incoming LMT supply being matched by greater pent-up demand in these cities.
  • Expect rent increases trending below inflation rate: Further upgrades to incoming modern logistics facilities will lift rent levels in regional cities as well as urban facilities adjacent to the Tokyo CBD. However, landlords in the remaining properties are unlikely to impose similar rent increases given the increasing financial difficulties faced by many small logistics operators.

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