The positive outlook for the economy is set to drive the demand for logistics services, as many Japanese companies are increasingly adopting an asset-light model that allows them to focus their resources on their core businesses. Under this strategy, many companies have divested their logistics-related assets and started to outsource their logistics needs to 3PL service providers. This in turn has translated into an increase in demand for quality logistics facilities and modern-specifications distribution centers.
We have noted that demand has been balanced by the continued availability of prime logistics space. Capital values and rents for warehousing and high-specifications facilities are expected to remain relatively stable. Some areas in the Greater Tokyo Area where quality warehouses are in high demand might witness moderate appreciation in their land values.