Fukuoka Logistics Market Summary
Q2
2024 August 2024
Leasing market is expected to remain tight due to limited supply
Demand and Supply
Demand for logistics facilities in Fukuoka remained strong in 2Q24, with existing properties driving net absorption to 35,000 sqm.
No new supply entered the market in 2Q24, and the stock remained at 1,410,000 sqm.
The vacancy rate at end-2Q24 stood at 3.0%, down 250 bps q-o-q and up 180 bps y-o-y.
Key Performance Indicators
For 2019 to 2023, take-up, completions and vacancy rate are year-end annual. Future supply reflects figures for 2024.
JLL
Investor interest is strong, but opportunities are limited
Asset Performance
Rents stood at JPY 3,441 per tsubo, per month at end-2Q24, unchanged q-o-q and up 4.1% yo-y. Rents continued to rise across the overall market, driven by higher rents in newer facilities spilling over to existing facilities.
Investment Market
Capital values continued to grow in 2Q24, reflecting a compression in investment yields and moderate rent growth.
Outlook
There are a small number of facilities with vacant areas; existing facilities are seeing a high occupancy rate. Multiple new projects in the Chikugo-Ogori Interchange area have reached full occupancy in the past year. In addition, future supply has seen pre-commitment progress. As such, the demand-supply balance is expected to remain tight.
Reflecting the increase in construction costs, future supply is expected to command higher rents compared to existing facilities. This, coupled with limited vacancy, means rents are expected to increase.
In the investment market, while the number of actual transactions is few, investor interest in the logistics market in Fukuoka has been strong, in part due to the semiconductor plant established in Kumamoto in the Kyushu area. As investors take into account the investment yield trends in Tokyo and Osaka, investment yields are expected to be placed under downward pressure.
Financial Indices
Global Property Clock
Source: JLL
Source: JLL US positions relate to the overall market
Jones Lang LaSalle K.K.
Tokyo Headquarters Kioi Tower, Tokyo Garden Terrace Kioicho 1-3 Kioi-cho Chiyoda-ku, Tokyo 102-0094 +81 3 4361 1800
Fukuoka Office
Daihakata Bldg. 2-20-1 Hakata-ekimae, Hakata-ku, Fukuoka-shi Fukuoka 812-0011 +81 92 233 6801
Osaka Office Nippon Life
Yodoyabashi Building 3-5-29 Kitahama Chuo-ku, Osaka 541-0041 +81 6 7662 8400
Nagoya Office
JP Tower Nagoya 1-1-1 Meieki, Nakamura-ku, Nagoya-shi
Aichi 450-6321 +81 52 856 3357
Contact
Takeshi Akagi
Head of Research Research - Japan takeshi.akagi@jll.com
Manabu Taniguchi
Senior Director Research - Japan manabu.taniguchi@jll.com
Takeshi Yamaguchi
Research Director
JLL Japan Osaka Office takeshi yamaguchi@jll.com
Edward Liang Manager Research - Japan edwardl.liang@jll.com
About JLL
For over 200 years, JLL (NYSE: JLL), a leading global commercial real estate and investment management company, has helped clients buy, build, occupy, manage and invest in a variety of commercial, industrial, hotel, residential and retail properties A Fortune 500® company with annual revenue of $20 8 billion and operations in over 80 countries around the world, our more than 108,000 employees bring the power of a global platform combined with local expertise Driven by our purpose to shape the future of real estate for a better world, we help our clients, people and communities SEE A BRIGHTER WAYSM JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated For further information, visitjll com
About JLL Research
JLL’s research team delivers intelligence, analysis and insight through marketleading reports and services that illuminate today’s commercial real estate dynamics and identify tomorrow’s challenges and opportunities. Our more than 550 global research professionals track and analyze economic and property trends and forecast future conditions in over 60 countries, producing unrivalled local and global perspectives. Our research and expertise, fueled by real-time information and innovative thinking around the world, creates a competitive advantage for our clients and drives successful strategies and optimal real estate decisions.
