Tokyo
• Demand frome-commerce and3PLcompanies remains robust
• Vacancyratedeclines forthirdconsecutive quarterto8.2%
• Rents continue toriseduetoconstruction costincreasesandtightsupply-demand balance
Demandfrome-commerceand3PLcompaniesremainsrobust,withnetabsorptioninQ12026reaching179,000tsubo.Strongdemandwasobservedbothin peripheralareassuchastheKen-OExpresswayareaandinhigh-rentareassuchastheGaikanExpresswayarea.
Newsupplytotaled142,000tsuboacrosssixproperties,upfromthepreviousquarterbutlessthanthefive-yearaverage.Asnetabsorptionexceededsupply,the vacancyratedeclinedforthethirdconsecutivequarterto8.2%,down0.6ppq-o-q and2.2ppy-o-y.
Rentsstandat4,823yenpertsubopermonth,up0.9%q-o-qand3.1%y-o-y.Risingconstructioncostshavedrivenuprentsfornewproperties,pushingup existingpropertyrents.Somewell-locatedpropertiessawaskingrentsincreasebyover10%followingtenantdepartures.
Capitalvaluesrose0.1%q-o-qand1.2%y-o-y.Althoughcapratesroseslightly,partiallyreflectinghigherbondyields,valuesincreasedreflectingrentgrowth.
Outlook:
RentgrowthacrossGreaterTokyoisexpectedtocontinue,supportedbystabledemandandthefactthatnewdevelopmentremainsconstrainedandselective duetorisingconstructioncosts.However,inperipheralareaswherepropertiesmustappealtotenantswithlowerrents,rent increasesareexpectedtobemore moderate.
AccordingtoOxfordEconomics,furtherinterestrateincreasesareanticipated,butcaprateincreasesareexpectedtobelimited.Thisisduetorisingrental growthexpectations,asevidencedbythepenetrationofCPI-linkedrents.Assuch,capitalvaluesareexpectedtocontinuerising,particularlyforwell-located, high-gradepropertieswherefurtherrentgrowthisanticipated.
Fundamentals
YTD
Note:TokyologisticsreferstotheGreaterTokyoprimelogisticsmarket.Dataisonan NLAbasis.
Historicalsupplyanddemandtrends
tsubo(thousands)
Research
TokyoLogistics
MarketDynamics Q12026
JonesLangLaSalleK.K.
Tokyo Headquarters
KioiTower, Tokyo Garden Terrace Kioicho
1-3Kioi-cho Chiyoda-ku, Tokyo 102-0094
+81343611800
Kansai
Nippon Life
Yodoyabashi Building 3-5-29KitahamaChuo-ku, Osaka541-0041
+81676628400
Fukuoka
FukuokaDaimyoGardenCity 2-6-50Daimyo, Chuo-ku,Fukuoka-shi
Fukuoka810-0041
+81922336801
Nagoya
JPTowerNagoya 1-1-1Meieki, Nakamura-ku,Nagoya-shi
Aichi450-6321
+81528563357
Formoreinformation,pleasecontact
HiroshiOkubo
Headof Research
Research-Japan hiroshi.okubo@jll.com
ManabuTaniguchi
Senior Director
Research-Japan manabu.taniguchi@jll.com
COPYRIGHT ©JONESLANGLASALLEIP,INC.2026
Thisreporthasbeenpreparedsolelyforinformationpurposesanddoesnotnecessarilypurporttobeacompleteanalysisofthetopicsdiscussed,whichareinherentlyunpredictable. It has been based on sources we believe to be reliable, but we have not independently verified those sources and we do not guarantee that the information in the report is accurate or complete. Any views expressed in the report reflect our judgment at this date and are subject to change without notice. Statements that are forward-looking involve known and unknown risks and uncertainties that may cause future realities to be materially different from those implied by such forward-looking statements Advice we give to clients in particularsituationsmaydifferfromtheviewsexpressed inthisreport. Noinvestment orotherbusinessdecisions shouldbemade basedsolelyontheviewsexpressed inthisreport.