Japan Research|
May 2024
FukuokaLogistics MarketSummary
Q1
2024
Demand
isstrongandthereisnosenseofexcesssupply, andtherearelowvacancies.
DemandandSupply
Demandremainedstrongin1Q24,withnet absorptionof167,000sqm,drivenbydemand forexistingpropertiesandnewcompletions.
Newsupply ofonefacilitytotalled132,000 sqmin1Q24,increasingthestock(total leasablearea)by10%q-o-qto1,410,000sqm.
Thevacancyratestoodat5.5%atend-1Q24, decreasing330bpsq-o-qandincreasing330 bpsy-o-y.
KeyPerformanceIndicators
Physicalindicators
For2019to 2023, take-up, completionsandvacancy rate are year-end annual.Future supply reflects figures for2024.
Source: JLL
©2024 JonesLang LaSalleIP,Inc.Allrights reserved. 1 | Fukuoka Logistics Market Summary
0 2 4 6 8 10 0 50 100 150 200 250 300 2019 2020 2021 2022 2023 2024F Percent Thousand sqm Take-up(net) Completions FutureSupply VacancyRate
Vacancyrate Q-o-Q Y-o-Y GreaterFukuoka 5.5% -330bps +330bps Rentspertsubopermonth Q-o-Q Y-o-Y GreaterFukuoka JPY3,441 +2.7% +4.1%
Investor interestishigh,butinvestment opportunities are limited
AssetPerformance
RentsaveragedJPY3,441pertsuboper monthatend-1Q24,increasing2.7%q-o-q and4.1%y-o-y.Thehigh-level rentsofnew completionscontinuedtodrivetherentsof existingpropertiesandcontinuedtopushup overallrents.
InvestmentMarket
CapitalvaluesinGreaterFukuoka continued toincrease,reflectingcapratecompression andstablerentgrowth.
Outlook
Althoughlarge-scalenewcompletionswere supplied, pre-commitmentratewashigh upon completionandthevacancyratedeclined.The numberofvacantpropertiesislimited,and manyexisting propertiescontinuetohavehigh occupancy.Therecontinuestobeasituation wheretherearealmostnopropertiesavailable fortenantstochoosefrom.
Constructioncostscontinuetorise,anditis expectedthatpropertiescompleteinthefuture will havehigher rentscomparedto surroundingproperties.Newcompletions continuetohavehigh pre-commitmentrate uponcompletion,andoverallrentsare expectedtocontinuetorise.
Althoughtherearefewactualtransactions, investors'interestishigh, partlyduetothe influenceofKumamoto,which attracts attentionofsemiconductorfactories.Itis expectedthatcaprateswill continueto compressbasedonyieldsinGreaterTokyoand GreaterOsaka.
FinancialIndices
GlobalProperty Clock
Source: JLL
Source: JLL USpositions relateto the overall market
©2024 JonesLang LaSalleIP,Inc.Allrights reserved. 2 | Fukuoka Logistics Market Summary
80 90 100 110 120 130 140 4Q19 4Q20 4Q21 4Q22 4Q23 4Q19 = 100 RentalValueIndex CapitalValueIndex
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TokyoHeadquarters KioiTower, Tokyo GardenTerraceKioicho
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DaihakataBldg.
2-20-1Hakata-ekimae, Hakata-ku,Fukuoka-shi Fukuoka812-0011
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Contact
TakeshiAkagi HeadofResearch Research-Japan takeshi.akagi@jll.com
ManabuTaniguchi SeniorDirector Research-Japan manabu.taniguchi@jll.com
TakeshiYamaguchi ResearchDirector
JLLJapanOsakaOffice takeshi yamaguchi@jll.com
EdwardLiang Manager Research-Japan edwardl.liang@jll.com
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