Location Matters: An Analysis of Greater Tokyo LMT Logistics Facilities and Rents

Does distance from highway interchanges and train stations affect rent levels?

As of the end of Q3 2022, the number of large multi-tenant (LMT) logistics facilities in Greater Tokyo recorded in CBRE’s database had reached 228 properties, covering in excess of 5.2 million tsubo of leasable floor space. As the scale of the market expands, the locations in which these facilities are being built are also becoming more diverse. Initially, modern logistics facilities were located primarily in the waterfront areas of Shinagawa-ku, Ota-ku, Kawasaki, and Yokohama, as well as the areas surrounding Narita International Airport. However, the expansion of the highway transportation network has led to an increasing number of new developments in inland locations, with properties being built even beyond the outer edge of the Ken-o-do in recent years. Against this backdrop, this report provides an analysis of the relationship between location and rent levels of LMT logistics facilities in Greater Tokyo.