Japan - March 2023

S P OT L I G H T
Savills Research

Japan Logistics©ESR LTD

Japan Logistics

Demand remains ﬁrm, but the industry
faces many challenges
Summary• In Greater Tokyo, high levels of
new supply continued to exceed
demand, and vacancy rates rose
2.1 percentage points (ppts)
year-on-year (YoY) to 4.4%. Thatsaid, demand remains ﬁrm andvacancies are moderate in Tokyo.
• The Greater Osaka market
was slightly more stable thanGreater Tokyo, and the balance
between supply and demand
was tighter, owing to few newcompletions in 2022. As such,vacancy is still relatively low
and only saw an increment of
0.9ppts, reaching 2.4%.

INTRODUCTION
Interest in the logistics sector has persisted
over the past half-year, and both development
and transaction activity have remained strong.
That said, the market appears to be entering aperiod of transition, and there are some concernsthat the previously tight balance between
demand and supply has already started to loosen.
Although vacancies in Greater Tokyo1 andGreater Osaka2 remain moderate overall, averagerents experienced a contraction over the past
half-year. Furthermore, some existing facilities
1 Greater Tokyo is deﬁ ned as the region which consists ofTokyo, Kanagawa, Chiba, and Saitama
2 Greater Osaka is deﬁ ned as the region which consists ofOsaka, Kyoto, Hyogo, and Nara

Graph 1: Supply, Net Absorption and Vacancy in Greater Tokyo, 2010 to 2022
Completions
4,000

Vacancy rate (RHS)
16%

3,500

14%

3,000

12%

2,500

10%

2,000

8%

1,500

6%

1,000

4%

500

2%
0%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Source Ichigo Real Estate Service, Savills Research & Consultancy
Note Annual periods from February to January. Vacancy rates are as of the year end
for each annual period, while the rate presented for 2H/2022 is as of January 2023.

Graph 2: Greater Tokyo Rent vs Vacancy, Q1/2016 to Q4/2022

Average rent (LHS)

Average vacancy (RHS)
6%

4,700
4,600

5%
4,500
4%
4,400
4,300

3%

4,200
2%

VACANCY RATE

4,100
1%
4,000
3,900

0%
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4

• Japan faces chronic labour
shortages in the logistics sector,
and the cost of labour has
risen signiﬁcantly over the past
few years. New regulations ondelivery drivers in 2024 are likely
to worsen this. Logistics ﬁrms
operate on tight margins, andthis may cap rental growth going
forward.

5Y avg completions (2018-2022)

0

JPY / TSUBO / MONTH• New supply in 2023 is forecast to
exceed the signiﬁcant levels seen
in 2022 in both the Greater Tokyoand Greater Osaka markets. This
wave of new supply will further
intensify competition for tenants.
As such, poorly located andolder facilities will struggle withvacancies.

Net absorption

VACANCY RATE

• Investment levels in 2022 slightly
lagged those of the previous
year. Although demand wasstrong among both domestic
and international investors, anincrease in construction costs andinterest rates led some investors
to reconsider development andacquisitions in the logistics sector.

THOUSAND SQ M

• Rents in Greater Tokyo declined
3.6% half-year-on-half-year (HoH)
and 2.4% YoY, and are now at
JPY4,510 per tsubo.
• Rents in Greater Osaka increasedby 1.4% YoY but saw a contractionof 4.5% HoH, and now stand at
JPY4,220 per tsubo.

are reportedly struggling with vacancies, andpre-leasing activity has been sluggish in several
new developments.
Indeed, a wave of new supply is forecast overthe next few years in both submarkets, andcompetition for tenants will increase, which islikely to contribute to some upward vacancy
movement and revisions in rents. Meanwhile,
structural factors also look set to aﬀect
conﬁdence in the logistics sector. The ongoinglabour shortage continues to increase labourcosts for logistics companies, while the increasein construction costs and interest rates areforcing some investors to reconsider acquiring

2016

2017

2018

2019

2020

2021

2022

Source Ichigo Real Estate Service, Savills Research & Consultancy
Note Annual periods from February to January.

savills.co.jp/insight-and-opinion/2

Japan Logistics

land for development as well as logistics
facilities for the meantime.
Nonetheless, the fundamentals in the sector
are still strong, and tenant demand will likely
persist due to the strong growth potential of
the e-commerce industry. Hence, the outlook
should remain positive overall for the logistics
market going forward.

As the e-commerce industry continues
to expand, the demand for logistics
services remains strong. However, acombination of substantial upcoming
new supply and cost pressures on
tenants due to inﬂation and labour
shortages make rental growthincreasingly difficult. Interest rateincreases also threaten to soften
yields, and investors might look toother sectors for opportunities.

MARKET TRENDS
2022 saw a large supply of new logistics
facilities come to the Greater Tokyo market,
and this pace of completions is forecast tocontinue in 2023. However, supply continues
to outpace demand and the absorption of new
supply remains an issue in Greater Tokyo.
As such, vacancy has risen further to 4.4% in
2H/2022, up by 2.1 percentage points (ppts)
year-on-year (YoY). Although the appetite
for logistics space remains high overall,Graph 3: Supply, Net Absorption and Vacancy in Greater Osaka, 2010 to 2022
Completions

Net absorption

5Y avg completions (2018-2022)

Vacancy rate (RHS)

2,000

15%

1,750
12%

1,250

9%

1,000
6%

750

VACANCY RATE

THOUSAND SQ M

1,500

500
3%
250
0

0%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Source Ichigo Real Estate Service, Savills Research & Consultancy
Note Annual periods from February to January. Vacancy rates are as of the year end
for each annual period, while the rate presented for 2H/2022 is as of January 2023.

Graph 4: Greater Osaka Rent vs Vacancy, Q1/2016 to Q4/2022

Average vacancy (RHS)

4,300

12%

4,100

10%

3,900

8%

3,700

6%

3,500

4%

3,300

2%

3,100

0%
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4

14%

VACANCY RATE

JPY / TSUBO / MONTH

Average rent (LHS)
4,500

2016

2017

2018

2019

2020

2021

2022

Source Ichigo Real Estate Service, Savills Research & Consultancy
Note Annual periods from February to January.

3

pre-leasing has been weak in some newfacilities, and potential tenants are becoming
increasingly selective. Nevertheless, vacancy
remains on the lower end of the spectrum anddemand is strong overall.
Asking rents declined over the past
half-year, dropping to JPY4,510 per tsubo
in 2H/2022, a contraction of 2.4% YoY.
Throughout the pandemic, demand has
been strong and vacancy was low, largely
due to the rise of e-commerce in Japan.
However, anticipating further increments
in demand, there was a rush of development
activity, creating greater competition fortenants throughout 2022. The large new
supply scheduled for completion in 2023 is
likely to further distort the balance between
demand and supply, and although welllocated properties with modern facilities will
likely remain popular, vacancies may persist
elsewhere, particularly in properties with poor
accessibility and high rents.
The Greater Osaka market has been stable
over the past half-year and has continued
to perform well relative to Greater Tokyo.
The balance between supply and demandremained tight, with few completions taking
place in the latter half of 2022. Meanwhile,
many new multi-tenant facilities in Greater
Osaka were fully occupied upon completion,and many existing vacancies have been ﬁ lledover the past half-year. That said, overallvacancy rates experienced an increment in
Q4/2022, up 0.9ppts YoY to 2.4%. Indeed,
large levels of new supply are forecast forcompletion in the coming years in Greater
Osaka, which may bring about some newvacancy trends going forward.
Average asking rents in Greater Osaka
have increased by 1.4% YoY to JPY4,220 per
tsubo, and demand appears to be stable.
However, with the upcoming expansion of

Japan Logistics

the Shin-Meishin Expressway, more locations
will become suitable for developing new
facilities, and a large uptick in new supply is
predicted for after 2024. Hence, the market
may see rental revisions in coming periods as
the greater supply brings greater competition
for tenants. Furthermore, this may redirect
some demand away from less modern andpoorly-located units, exacerbating regional
and property-level disparities.

INCOMING SUPPLYIn Greater Tokyo, the pace of completions
remained consistently high, with nearly
2.2 million sq m of new logistics space
introduced to the market in the second halfof 2022, bringing the 2022 total to around 3.9
million sq m. Daiwa House made the mostsigniﬁcant contribution to this new supply
over the past half-year, adding an aggregate
530,000 sq m to the Greater Tokyo market,

Graph 5: Annual New Supply* in Japan by Region, 2018 to 2025F
Greater Tokyo

Greater Osaka

Other

8
7

GFA (MILLION SQ M)

6
5
4
3
2
1
0
2018

2019

2020

2021

2022

2023F

2024F

2025F

Source Ichigo Real Estate Service, Savills Research & Consultancy* Projects in 2022 and beyond tend to be added later once details are ready to be announced. The data
provided by Ichigo only considers facilities with GFAs > 10,000 sq m and is as of 1 February 2023.

Map 1: Upcoming Completions in Greater Osaka with GFA greater than 50,000 sq m,
2023 to 2027*
GFA
50,000100,000

Completion Year
2023
2024

200,000

2025

300,000

2026

400,000

2027

Source Ichigo Real Estate Service, Savills Research & Consultancy* Projects where GFA and/or completion date are unavailable are omitted from the dataset.
New supply data is as of 1 February 2023.

while the GLP ALFALINK Nagareyama 5 and
6 facilities by GLP Japan were the largest
completions of signiﬁcant scale3 this yearwith an aggregate GFA of 234,000 sq m.
Meanwhile, Prologis completed its 161,000
sq m Prologis Park Yachiyo I in Chiba in
September 2022, and due to strong tenant
demand, Prologis is also aiming to develop
another facility, the 93,000 sq m multi-tenantfacility Prologis Park Yachiyo II, on theadjacent site in 2023. The largest upcoming
development in 2023 will be the ESR Ogishima
Distribution Centre in Kawasaki, which will
deliver a GFA of 365,000 sq m. The facility is
located very close to Tokyo bay, and will beneﬁt
from convenient connections to central Tokyo.
While development activity was signiﬁcant in
2022, Greater Tokyo looks to welcome a record
4.3 million sq m of new supply in 2023. These
include developments by Daiwa House, GLP
Japan, and Prologis, among others, several ofwhich will be over 100,000 sq m.
On the other hand, new supply in Greater
Osaka was limited in the second half of 2022,
and the total new supply for the year sits ataround 550,000 sq m. Although most newlogistics facilities were under 40,000 sq m,
the largest addition in the last half-year was
Daiwa House’s DPL Ibaraki Kita in Osaka,
which has a GFA of 116,000 sq m, by far thelargest new facility in Greater Osaka. The
facility is located around 1km away fromthe Shin-Meishin expressway, providing
convenient access between Osaka, Kyoto andthe wider west-Japan region.
Looking forward, development activity
is scheduled to accelerate rapidly in Greater
Osaka in 2023 and 2024. Aside from thenotably large GLP ALFALINK Amagasaki
facility scheduled for completion in 2026,
which will comprise 370,000 sq m, GLP
Japan will also develop the adjoining GLPALFALINK Ibaraki I and GLP ALFALINK
Ibaraki III in Osaka, which will deliver
a combined 283,000 sq m of new space.
Meanwhile, CenterPoint Development
will develop two facilities in the northernoutskirts of Kobe with a combined GFA of
300,000 sq m. Overall, new supply is forecast
to reach 960,000 sq m in 2023 and then 1.0
million sq m in 2024, a notable incrementfrom the subdued levels in 2022.
Average vacancy rates remain moderate
across most logistics facilities in Japan, while
demand remains strong with the expansionof e-commerce, and some possible delays
to construction due to pandemic-induced
supply chain constraints and labour shortages
might have helped to maintain the balanceof demand and supply overall. However, anumber of existing facilities are already facing
issues in recruiting tenants, which could
worsen as the completion of new facilities
accelerates. Hence, some rental adjustments
are likely to take place, the extent of which will
depend largely on location and current rents,
among other factors.
3 Deﬁ ned as exceeding 100,000 sq m in GFA

savills.co.jp/insight-and-opinion/4

Japan Logistics

Graph 6: Share of Investment Volumes by Asset Class, 2007 to 2022
Logistics

OfficeResidential

RetailHospitality

Other

Total

90%

9

80%

8

70%

7

60%

6

50%

5

40%

4

30%

3

20%

2

10%

1

0%

0

PROPORTION OF INVESTMENT (%)

10

JPY TRILLION

100%

Source RCA, Savills Research & Consultancy

Graph 7: Six-month-ahead Expectations for Rent and Capital Appreciation, 2008 to
1H/2023
Rents

Capital values

100
80.9
78.0
74.3 75.0
67.5 66.7 66.3
69.2
66.8
66.3
60
56.2
53.3
53.3
48.843.2
54.7
50.5 48.8
50.7
38.0
38.9
40
29.9
45.1
27.3
41.0 26.5
34.8
22.6 25.9 25.337.0
29.7
25.6
28.6
28.4
28.7
20 13.8
19.6 26.5
23.1
18.7
21.0
8.4
7.7
19.2
13.0
14.1
5.0
0
6.9
-14.8 -4.8
-6.3 -13.1 -3.7
-20.5
-20
-15.9
-25.9
-37.7
-40
-40.3
-42.0 -63.9-60

DIFFUSION INDEX

80

-80
-86.2
1H
2H
1H
2H
1H
2H
1H
2H
1H
2H
1H
2H
1H
2H
1H
2H
1H
2H
1H
2H
1H
2H
1H
2H
1H
2H
1H
2H
1H
2H
1H

-100
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Source Ichigo Real Estate Service, Savills Research & Consultancy

Table 1: Selected Investments, Announced August 2022 to February 2023

PROPERTY NAMEAPPRAISAL
TRANSACTION
DIRECT CAP
VALUE (JPY BIL)
RATE

BUYER

SELLER

Blackstone Portfolio(7 facilities)

80.0 - 90.0-

Gaw Capital Partners

BlackstoneGroup

GLP REIT portfolio(6 facilities)

63.0

3.5% to 4.4%

GLP REIT

Reo GK, Suzuka
Holdings GK

Mitsubishi EstateLogsitics REIT portfolio(7 facilities anda leased site)

45.4

4.1% to 5.3%

Mitsubishi Estate
Logistics REIT

Multiple

Nippon Prologis REIT
porftolio (3 properties)

43.4

4.3% to 4.4% Nippon Prologis REIT

Multiple

Daiwa House REIT
portfolio (4 properties)

38.0

4.4% to 5.1%

Daiwa House REIT

Daiwa House
Industry andsubsidiaries

ESR Ichikawa
Distribution Centre(additional 33.3% stake)

34.0

-

ESR

M&G Real
Estate Asia

i Missions Park
Ichikawa-Shiohama

21.8

3.6%

Advance Logistics
Investment
Corporation

Itochu, Itochu
Property
Developments

Source Company Disclosures, Nikkei RE, Savills Research & Consultancy

5

INVESTMENT TRENDS
According to preliminary data aggregatedby Real Capital Analytics (RCA), investment
activity in Japan was relatively strong in thesecond half of 2022, with total investments
just shy of 2021 levels at JPY5.3 trillion.
However, despite the surge in popularity ofthe sector in the past few years, investment
in logistics facilities fell by 24% compared tothe previous year, standing at JPY580 billion.
That said, it is important to rememberthat the data is still preliminary and thatinvestment volumes will likely increase as
more past transactions are announced in the
coming year.
Domestic investors have been the mostactive in the logistics market, and many
notable J-REIT transactions were recordedin the second half of 2022. For instance, thelargest J-REIT announcement involved GLP
Investment Corporation, which acquired six
logistics facilities in Greater Tokyo, Greater
Osaka, and Mie for JPY63.0 billion. Elsewhere,
Mitsubishi Estate Logistics REIT acquired
seven logistics facilities and a leased industrialsite in Greater Tokyo and Greater Osaka for
JPY45.4 billion, while Nippon Prologis REIT
acquired three facilities in Hyogo and Fukuoka
for JPY43.4 billion from an SPC aﬃliated with
its sponsor, Prologis. Furthermore, Daiwa
House REIT acquired four properties, locatedin Okinawa, Hiroshima, Osaka, and Ibaraki
from Daiwa House and its subsidiaries for
JPY38.0 billion.
There has been a notable expansion in bigticket investments by international investors
over the past half-year. For instance, Gaw
Capital Partners recently announced its ﬁrst
investment in the Japanese logistics sector.
This involved the acquisition of a portfolioof seven logistics facilities for between
JPY80 and 90 billion from Blackstone, andwas the largest logistics transaction in
2022. All seven transacted properties arelocated in the Tokyo metropolitan area andhave an aggregate GFA of 250,000 sq m.
Meanwhile, M&G Real Estate Asia increased
its ownership share in the 200,000 sq m ESR
Ichikawa Distribution Centre in Chiba to
58.3% by purchasing an additional 33.3% stakefor JPY34.0 billion in the Singapore entitythat owns the facility from ESR.
The appetite for logistics facilities has
been robust over the past half-year, withseveral high-proﬁle transactions taking
place and sharp pricing frequently observed.
However, interest rate increase may dampentransaction activity in the coming years. Theﬁ xed long-term contracts that are a common
feature of the logistics industry threaten todiminish yields. Hence, many investors willapproach future transactions with increased
caution. The 31st bi-annual market sentiment
survey conducted by Ichigo Real EstateJapan Logistics

Service appears to reﬂect this sentiment. Over
60% of respondents do not anticipate any
further capital appreciation, while a similar
proportion expect rents to remain ﬂat. Indeed,
many logistics tenants, who are frequently
struggling due to the inﬂationary environment
and labour shortages, would likely be unable tobear any further increases in rent.

Graph 8: Number of Home Deliveries, 2010 to 2021

TOTAL HOME DELIVERIES (MILLION)

5,500

5,000

4,500

4,000

3,500

3,000
2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

Source Ministry of Land, Infrastructure, Transport and Tourism, Savills Research & Consultancy

Graph 9: Average Hourly Wages for Warehouse Workers and Delivery Drivers,
1H/2014 to 2H/2022
Warehouse Workers

Delivery Drivers

1,250
1,200

JPY/HOUR

1,150
1,100
1,050
1,000
950

2014

2015

2016

2017

2018

2019

2021

2H

1H

1H

2020

2H

2H

1H

2H

1H

2H

1H

2H

1H

2H

1H

2H

1H

2H

1H

900
2022

Source Jobs Research Center, Savills Research & Consultancy

Graph 10: Proportion of Delivery Driver Workforce by Age, 2012 to 2021
10 to 19

20 to 29

30 to 39

40 to 49

50 to 59Over 60

100%

PROPORTION OF LABOUR FORCE

90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

Source Japan Trucking Association, Savills Research & Consultancy

savills.co.jp/insight-and-opinion/

6

THE SHORTAGE OF LABOUR
The shortage of labour is a chronic issue
facing the logistics industry, stemming fromseveral endemic factors such as Japan’s
ageing demography and often tough working
conditions, among others. This trend places
heightened cost pressures on tenants, manyof whom already operate on thin proﬁt
margins, and threatens to constrain further
growth in the sector.
Japan’s e-commerce industry experienced abelated period of growth during the pandemic,
and the demand for B-to-C home deliveries
expanded rapidly (graph 8). Hiring moreworkers was essential in keeping up with
online consumption, and wages for warehouse
workers and delivery drivers grew signiﬁcantly
from 1H/2020 onwards (graph 9).
Although average wages have risen over the
past few years, the industry requires long hours,
and working conditions remain notoriously
poor for delivery drivers. Furthermore, asigniﬁcant proportion of drivers are contracted
through external agencies, and therefore lackthe same beneﬁts aﬀorded to regular full-time
staﬀ. Indeed, some drivers even have to bear
the costs of transport and vehicle maintenancethemselves.
Unsurprisingly, the logistics industry still
experiences an acute shortage of delivery
drivers, which will worsen as the average worker
age increases. As Graph 10 demonstrates, theproportion of delivery drivers over 50 years
old grew from around 36% in 2012 to 45%
in 2021, with over a third of those over 60
years old. As such, the proportion of workers
moving into retirement will grow every year,
while people in their 20’s and 30’s become
increasingly unwilling to join the industry. As
a result, the job-to-applicant ratio for delivery
drivers has increased to 2.3x in 2H/2022 (graph11). Additionally, despite the additional costs
incurred from having to source suﬃcient
additional drivers, logistics companies are
reluctant to pass on these costs to consumers,
given the high customer-service expectations
among consumers in Japan. Hence, this further
diminishes the proﬁt margins among operators.
Existing manpower shortages will likely
be exacerbated by government overtime
regulations on delivery drivers slated for April
2024, which will limit drivers to 960 hours ofovertime work in a year. With the e-commercemarket forecast to expand even further, theNomura Research Institute predicts that

Japan Logistics

Graph 11: Job-to-applicant Ratio for Delivery Drivers and Construction Workers,
1H/2014 to 2H/2022
Delivery Drivers

Construction Workers

JOB-TO-APPLICANT RATIO

6.0

5.0

4.0

3.0

2.0

1.0

2014

2015

2016

2017

2018

2019

2020

2021

2H

1H

2H

1H

2H

1H

2H

1H

1H

2H

2H

1H

2H

1H

2H

1H

2H

1H

0.0
2022

Source Ministry of Health, Labour and Welfare, Savills Research & Consultancy

around 35% of packages in Japan will be
undeliverable by 2030 due to insuﬃcient
staﬀ, with regional areas set to be the most
severely aﬀected.
Overall, the labour shortage presents asigniﬁcant hurdle for the logistics industry.
Despite the sharp pricing of logistics facilities
and interest rate increases, logistics facility
owners are constrained in increasing rents intandem, due to long-term leasing contracts.
Meanwhile, tenants don’t have much capacity
for higher rents on top of the higher energy
and labour costs.
Many developers and operators appear to be
taking it upon themselves to develop solutions,and innovations in the space of automation
are progressing rapidly. For instance, Mitsui& Co. is looking to launch a logistics business
utilizing driverless trucks from 2026, while
Japan’s largest truck maker, Hino Motors
announced its plans to help inexperienced
drivers by developing a new truck equippedwith driving assistance functions in 2022.
Additionally, Japanese IT corporation NEC has
been developing a remote management systemusing digital twin technology to manage
automated logistics tasks.
For the meantime, improving worker
satisfaction and attracting workers organicallyhas been the priority among developers. These
initiatives often include on-site children’s
day care facilities and services, as well as
amenities such as cafeterias, shops, gyms, andgardens, among others. For instance, GLP
ALFALINK Samigahara I in Kanagawa wasdeveloped over a large area with an openconcept town design. The on-site amenities
are intended to address the labour crunch by
improving the quality of life of workers andtheir families living and working in the area.
Going forward, these integrated developments
may become the norm, especially for larger
scale new logistics developments that require
more workers.

OUTLOOK
The fundamentals of the logistics sector are
strong, and conﬁdence appears to be high.
The demand for logistics facilities will likely
continue to expand as the e-commerce market
grows, and vacancy rates remain moderate
overall, even after increments in both Greater
Tokyo and Greater Osaka over the past halfyear. Although investment activity in thelogistics sector was somewhat limited in 2022,
many signiﬁcant transactions were observed,
and international investors have been active
over the past half-year.
However, there are some dark clouds on
the horizon, and future growth in the sector
will likely be constrained by structural
factors. In particular, logistics operators
face elevated operating costs due to chronic
labour shortages on top of high energy
prices. Landlords will have a diﬃcult time
implementing rent increases, given the thin
margins that many tenants are operatingon. Moreover, with a new wave of upcoming
supply in 2023 and 2024, competition
for tenants will likely intensify, and thenegotiating power of owners may weaken
further. Logistics facility owners face theadded pressure of increasing interest rates.
Transaction activity may slow down as thestable long-term lease model prevalent in
the logistics sector becomes unappealing toinvestors in an inﬂationary environment.
Overall, we predict that the sector willcontinue its strong performance; the growthof e-commerce will require the developmentof modern logistics facilities which will
attract further investment. That said, therate of growth in the future may be limited,
and tenants will likely be drawn to new
developments with good accessibility,
modern facilities, and reasonable rental
levels, while other older facilities may
struggle with vacancies and be forced torevise rents going forward.

For more information about this report, please contact us

Savills Japan

Savills Research

Christian Mancini
CEO, Asia Paciﬁc(Ex. Greater China)+81 3 6777 5150
cmancini@savills.co.jp

Tetsuya Kaneko
Managing Director, Head of
Research & Consultancy, Japan+81 3 6777 5192
tkaneko@savills.co.jp

Simon Smith
Regional Head of Research& Consultancy, Asia Paciﬁc+852 2842 4573
ssmith@savills.com.hk

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