Large-scale development is on the rise in the Greater Fukuoka logistics market. While Large Multi-Tenant (LMT*) logistics facility stock in the area increased by an annual average of 7% between 2015 and 2020, this is set to surge to 18% per annum between 2021 and 2023.

Major corporations are the primary drivers of demand for LMT facilities in Greater
Fukuoka. Since Q2 2019, the LMT vacancy rate has remained unchanged at 0%, while effective rents have risen sharply. Conditions are now ripe for investment by developers.

Compared to the Greater Tokyo and Greater Osaka areas, the size of LMT logistics
facility stock in the Greater Fukuoka area in relation to its population and industrial
density suggests that the market still has considerable scope for expansion.

Development from 2021 is shifting to new areas, with pre-leasing generally proceeding smoothly. The supply-demand balance is anticipated to remain stable in the coming years. By Q4 2022, the LMT vacancy rate in Greater Fukuoka is projected to rise to 3.7%, although effective rents are forecasted to rise by 7.3% from Q4 2020 to JPY 3,380 per tsubo.