Logistics MarketDynamics Q22025
Tokyo
• Demandfrom3PLsandonlineretailerscontinuestoexpand.
• Overallvacancyremainsunchangedat10.3%.
• Rentgrowthtrendcontinues.
Demand pushednetabsorption to332,000sqminQ22025.Thiswas down 43%q-o-q, primarilyduetoreduced supply.Astransportcosts rise,demand isstrongforproperties closetothecity centre with shorttransportation distances,whileproperties infringeareaswith highertransportcostsarestrugglingtofind favour
Newsupplytotalled 358,000sqminQ22025,increasing totalstockby 1.5%q-o-q. Fourfacilitiesentered themarket.Allfourarelocated in theTokyoInlandarea,withtwolocatedintheKen-OExpresswayarea. ThevacancyrateinGreaterTokyo was10.3%forQ22025,unchanged q-o-q andup64bpsy-o-y. ThevacancyrateintheBayAreafellto 8.4%,adecrease of18bpsq-o-q, whileinTokyo Inlanditremained unchanged at11.0%.
GrossrentsinGreaterTokyo averaged JPY4,704per tsubopermonth inQ2,up0.6%q-o-q andup1.4%y-o-y. Risingconstruction costsare pushinguprentsfornewlysupplied properties, whichinturnis
pushinguprentsforexistingproperties. CapitalvaluesinGreater Tokyo rose0.4%q-o-q and1.1%y-o-yinQ22025,reflecting rent increases.Notablesalestransactionsincluded theportfolio acquired byFortressInvestment GroupandsoldbyGLPJ-REIT.
Outlook
Asdemand continues togrow andconstruction costsrise,rentsare expected togrow, especiallyforproperties inareaswithgood access.However, given thehighervacancy ratesandincreasesin transportation costs,rentsareunder downward pressureinfringe areas.Interestratesareexpected torisefurther.Nevertheless,thereis stronginvestment demand frombothcore investors, suchas insurancecompanies, andvalue-addinvestors, andinvestment yields areexpected toremainstable.Capitalvaluesofproperties ingood locationsareexpected torise,coupled withgrowing rents.
Fundamentals
Note:TokyologisticsreferstotheGreaterTokyoprimelogisticsmarket.Dataisonan NLAbasis.
Historicalsupplyanddemandtrends
(thousands)
TokyoLogistics MarketDynamics Q22025
JonesLangLaSalleK.K.
Tokyo Headquarters
KioiTower, Tokyo Garden Terrace Kioicho
1-3Kioi-cho Chiyoda-ku, Tokyo 102-0094
+81343611800
Kansai
Nippon Life
Yodoyabashi Building
3-5-29KitahamaChuo-ku, Osaka541-0041
+81676628400
Fukuoka
FukuokaDaimyoGardenCity 2-6-50Daimyo, Chuo-ku,Fukuoka-shi
Fukuoka810-0041
+81922336801
Nagoya
JPTowerNagoya 1-1-1Meieki, Nakamura-ku,Nagoya-shi
Aichi450-6321
+81528563357
Formoreinformation,pleasecontact
ManabuTaniguchi
Senior Director
Research-Japan
manabu.taniguchi@jll.com
COPYRIGHT ©JONESLANGLASALLEIP,INC.2025
Thisreporthasbeenpreparedsolelyforinformationpurposesanddoesnotnecessarilypurporttobeacompleteanalysisofthetopicsdiscussed,whichareinherentlyunpredictable. It has been based on sources we believe to be reliable, but we have not independently verified those sources and we do not guarantee that the information in the report is accurate or complete. Any views expressed in the report reflect our judgment at this date and are subject to change without notice. Statements that are forward-looking involve known and unknown risks and uncertainties that may cause future realities to be materially different from those implied by such forward-looking statements Advice we give to clients in particularsituationsmaydifferfromtheviewsexpressed inthisreport. Noinvestment orotherbusinessdecisions shouldbemade basedsolelyontheviewsexpressed inthisreport.