THE NEXT GENERATION OF LOGISTICS FACILITIES
Japan 2021 Logistics Occupier Survey
In terms of their location strategy for the next three years, 74% of respondents said they would expand their warehouse floor area. Most of the respondents cited "increased volume of goods" as their reason.
The survey reflected some changes in required locations and specifications. Many companies are now considering areas close to their production plants, or areas that connect metropolitan areas. Demand for air-conditioned facilities is expected to increase as the next generation logistics facilities become more important to consider the working environment.
Upward pressure on costs remains strong. While investments in new equipment and technologies will require larger premises, occupiers expect reduction in number of staff and/or labor costs.
The survey results indicate that logistics property market will continue to expand. However, tenants' requirements in terms of location and specifications are already more fragmented and are likely to become increasingly diverse in future.