Fukuoka
• Vacanciesarelimited tosomenewlyconstructed properties
• Steady demand continues,withhighoccupancyinexistingproperties
• Rentsexpected tocontinuerisingduetoincreased constructioncosts
In3Q24,theFukuokaareacontinued toseesteadydemand for logisticsfacilities,withnetabsorptionreaching 48,000sqm,primarily driven bydemand fornewproperty. For1Qto3Q2024,net absorptiontotalled 266,000sqm.
Thenewsupplyin3Qwas83,000sqm,increasing thetotalstockby 6%q-o-q and27%y-o-y to1,516,000sqm. Logiport FukuokaKasuya wasthenewly suppliedproperty. Theoverallvacancyrateforthe Fukuokaarearoseto5.6%,up2.1pptsq-o-q butdown 1.4pptsy-o-y.
Rents increased toJPY3,482pertsubo,permonth, up1.2%q-o-q and4.4%y-o-y. Highrentsfornewproperties arepushingupoverall rents,andexistingproperties arealsoseeinggradualrentincreases, following thetrend ofnewproperties. Reflecting therentincreases, capitalvaluesforlogisticsfacilitiesintheFukuokaareacontinue to showanupwardtrend.
Outlook
Therearefewproperties withvacancies, andmanyexisting properties continue tomaintainhighoccupancy rates.Properties under construction arealsoprogressing withtenantprecommitments, suggesting thatthetightsupply-demand situationis likelytocontinue.
Newproperties areexpected tocontinue seeingrentincreasesdueto soaringconstruction costs.Existingproperties arealsolikelyto experience rent increases,driven bytherentsofnewproperties.
Investor interestinFukuoka'slogisticsfacilitiesremains high,partly influenced bysemiconductor plantdevelopments inKumamoto. Strong investment demand andrisingrentsareexpected todrive continued increasesinproperty prices.
Fundamentals
Note:FukuokalogisticsreferstotheGreaterFukuokaprimelogisticsmarket.Datais onanNLAbasis.
Historicalsupplyanddemandtrends
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ManabuTaniguchi
Senior Director
Research-Japan manabu.taniguchi@jll.com Research
FukuokaLogistics MarketDynamics Q32024
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