Tokyo
CBRE releases Q4 2019 Japan Logistics MarketView
CBRE today released its Japan Logistics MarketView for Q4 2019.
January 31, 2020
Media Contact
Greater Tokyo Area: Net Absorption Rises 60% y-o-y in 2019; Q4 2019 Vacancy Rate Falls to Record Low of 1.1%
CBRE today released its Japan Logistics MarketView for Q4 2019.
Highlights:
- The vacancy rate for LMT in the Greater Tokyo Area stood at 1.1% in Q4 2019, the lowest level since CBRE’s surveys began recording this figure in 2004. Net absorption for full-year 2019 was a record high at 705,000 tsubo. E-commerce and logistics firms continue to drive this demand. New demand in 2019 is 705,000 tsubo, 1.6 times higher than the previous year.
- Vacancy rates were sub-2% in all four areas of Greater Tokyo. Among these, Ken-O-do Area registered a notable improvement, with the vacancy rate falling to 1.2%, the lowest level since 2008.
- Across the Greater Tokyo Area as a whole, effective rent rose by 1.4% q-o-q to JPY 4,290 per tsubo in Q4 2019.
- The vacancy rate in the Greater Osaka Area LMT market fell by 1.6 points q-o-q to 4.0%, marking the seventh consecutive quarterly decline. There is no vacant space in the inland area, and in the waterfront area, only two properties have large-scale space available. As such, pressure on rents is strengthening and effective rents rose by 3.0% q-o-q to JPY 3,810 per tsubo this quarter.
- The vacancy rate in the Greater Nagoya Area LMT market fell by 2.5 points q-o-q to 9.6% in Q4 2019. Net absorption during full-year 2019 was 81,000 tsubo, the highest level since the survey started recording this figure in 2007. Only two properties are currently in the development pipeline, meaning that the vacancy rate is expected to trend downward. Effective rent rose by 0.6% q-o-q to JPY 3,580 per tsubo.
CBRE VACANCY RATE FORECASTS (Q4 2019 – Q2 2020)
Vacancy rate for large multi-tenant logistics properties (“LMT”):
- The Greater Tokyo Area is forecast to rise by 0.8 points q-o-q to 1.9%
- The Greater Osaka Area is forecast to rise by 4.0 points q-o-q to 8.0%
- The Greater Nagoya Area is forecast to fall by 3.2 points q-o-q to 6.4%
For further details, refer to the Q4 2019 Japan Logistics MarketView published by CBRE.
https://www.cbre.co.jp/en/research-reports/industrial-reports
About CBRE K.K.
CBRE K.K. is the Japanese subsidiary of the U.S.-based CBRE Group, Inc. and a leading provider of integrated real estate services for corporate clients in Japan. With a legacy dating back to the founding of its predecessor, Ikoma Shoji, in 1970, CBRE has served as a trusted real estate expert in Japan for over half a century. The firm offers a comprehensive suite of over 20 service lines, including leasing and sales brokerage, advisory services, property management, and valuation, delivered from 8 offices nationwide. Its team of approximately 1,800 professionals (including subsidiaries) is committed to providing optimal, impartial, and data-driven real estate solutions that serve as an essential business infrastructure for its clients. For more information, please visit our website at www.cbre.co.jp and follow our social media accounts on LinkedIn, X, and Facebook.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE: CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm and a premier provider of critical infrastructure services. The company has more than 155,000 employees serving clients in more than 100 countries. CBRE serves clients through four business segments: Advisory (leasing, sales, debt origination, mortgage servicing, valuations); Building Operations & Experience (facilities management, property management, flex space & experience, critical infrastructure); Project Management (program management, project management, cost consulting); Real Estate Investments (investment management, development). Please visit our website at www.cbre.com.