Investor Presentaiton
Demand to remain healthy
Supply poses challenges
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Daiwa HouseⓇ
Large supply of logistics space in Japan over the past year moderated rental growth in for
logistics space in general
Older facilities and those with poor accessibility face challenges securing tenants
New supply may reduce in future, in view of the rising land prices and increasing construction
costs, which may tighten the demand-supply dynamics (1)
Demand well supported
✓ Demand has remained healthy as third-party logistics (3PL)
companies and e-commerce companies look to expand their
businesses and establish new bases
✓ Restriction on overtime for truck drivers expected to create new
demand for logistics facilities in the regional areas(2)
✓ Returning of overseas production processes back to Japan,
particularly in the semiconductor and automotive industries, may
also boost demand for logistics space in Japan (2)
The Manager
believes that the
long-term
fundamentals of
logistics sector in
Japan is expected to
remain healthy and
will continue to be
vigilant to changes
in market conditions
(1) Source: Savills Research - Japan: Review and 2024 Prospects (December 2023).
(2) Source: CBRE Research - Asia Pacific Real Estate Market Outlook 2024: Japan (December 2023).
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