The Questionnaire Survey on Industrial Market July 2024
1. Outlook for PriceA questionnaire survey about “Outlook for Logistics Market Conditions” is conducted semi-annually.
The results of the July 2024 survey of the outlook of real estate prices for the next six months are
the following percentages: “Rise” is at 22.3%, “Flat” is at 70.3%, and “Decline” is at 7.4% (Fig 1). The
percentage of respondents who chose “Flat” increased from 62.0% to 70.3%.
The top two reasons cited by respondents for the “Rise” are as follows:
1. The construction costs for logistics facilities are increasing.
2. The rent level of logistics facilities is increasing.
2. The market is becoming more active as logistics facilities have attracted more attention.
The top three reasons cited by respondents for the “Flat” are as follows:
1. It is not expected that the capitalization rates will decline further.
2. Market players, concerned about the risk of rising interest rates, will refrain from investing inlogistics facilities.
3. Real estate prices will end their upward phase and enter a flat one.
The top two reasons cited by respondents for the “Decline” are as follows:
1. Many logistics facilities will be completed, and the supply-demand balance is expected to ease.
2. Interest rates will rise.

Figure:1 Outlook for Real Estate Prices of Logistics Facilities Six Months Later
100%

6.5%
7.4%
11.2% 12.0%

80%
70.3%
66.3%
62.3% 62.0%

60%

40%

20%

27.2%
26.5%

26.0%
22.3%

0%

Decline

FlatRise

Source: Ichigo Real Estate Service

Copyright©2024 K.K. Ichigo Real Estate Service All rights reserved.

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The Questionnaire Survey on Industrial Market July 2024
2. Outlook for Rent
The results of the July 2024 survey of the outlook of rent for the next six months are the following
percentages: “Flat” is at 55.3%, “Rise” is at 41.5%, and “Decline” is at 3.2% (Fig 2). Nearly half of therespondents answered, “Rise”.
The top three reasons cited by respondents for the “Rise” are as follows:
1. As land prices and other development costs rise, rent has increased to reflect these additional costs.
2. Inflation also affects the rents of logistics facilities.
3. Various needs, such as cold storage warehouse and hazardous material warehouse, are increasingdemand.
The top three reasons cited by respondents for the “Flat” are as follows:
1. Because upward pressure on rents due to rising construction costs and downward pressure on rents
due to easing supply and demand will be balanced.
2. The supply from new developments and the demand for logistics facilities are balanced.
3. There are signs that the rent increase will come to an end.
And, respondents who chose “Decline” were very few.

Figure:2 Outlook for Rent of Logistics Facilities Six Months Later100%
9.0%
10.2%
9.8%

3.2%

80%
63.3%
60.9%

60%

55.3%
53.0%

40%
41.5%
38.0%

20%

29.3%
26.5%

0%

Decline

FlatRiseSource: Ichigo Real Estate Service

Copyright©2024 K.K. Ichigo Real Estate Service All rights reserved.

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The Questionnaire Survey on Industrial Market July 2024
◆ Overview of Methodology of the Questionnaire Survey➢ Summary of Questionnaire
Survey Target ：Practitioners and professionals associated with real estate.
( regardless of involvement with logistics ) .
Survey Method ：Questionnaires were sent via e-mail.
Response forms were collected via e-mail and website.
Survey Period ：July 23 to 31, 2024
Respondents ：94➢ Occupation RespondentsDevelopers
1%
9%

Asset Managements

4%
33%

8%
7%

Lenders
Construction Enterprises (General Constructor,Architect Office, etc.)

11%Enterprises (Logistics Company, etc.)
27%

Investigations,Research Institutions
Real Estate Service Providers

Others◆ Contact info
For any further inquiries, please contact:research@ichigo-re.co.jp
K.K. Ichigo Real Estate Service
https://www.ichigo-re.co.jp
AMT Omori Bldg.6F, 2-2-10 Omorikita, Ota-ku, Tokyo 143-0016, Japan

While we strive to ensure that the information contained in this report is accurate and reliable, we make noguarantees as to the accurateness, completeness, or otherwise. The contents of this report reflect our analysis
and judgment only as of the date and time of creation. We assume no liability or responsibility for futureforecasts.

Copyright©2024 K.K. Ichigo Real Estate Service All rights reserved.

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