Tokyo
• Demand expansion continues, driven bye-commerce salesgrowth
• Vacancyratedeclines significantlyto9.1%
• Rentalgrowth continues overall,thoughwithvaryingintensity bylocation
Solid demand continued withnetabsorptionreaching696,000sqm in3Q2025.Rental reductions incertainareasstimulatednew demand, whichexceeded new supply.Risingtransportation costsare strengthening demand forproperties inlocationsclosetocentral Tokyo, whileproperties infringe areaswithlonger transport distancesareexperiencing weakerdemand, withsometakingnearly twoyearstoreachfulloccupancy.
Newsupplyin3Q2025totalled472,000sqmacrossfourbuildings, withtwoproperties delivered intheBayareaandtheremaining two inInlandareas.GreaterTokyo's vacancy ratereached9.1%,falling 116basispointsq-o-q and79basispointsy-o-y. Bayareavacancy ratesfell16basispoints to8.3%,whileInlandareavacancy ratesfell 155basispointsto9.4%.
GrossrentinGreaterTokyo reached JPY4,724pertsubopermonth, up0.4%q-o-q and0.8%y-o-y. Risingconstruction costscontinue to driveuprentsfornew properties, subsequentlypushinguprentsfor surrounding properties.
GreaterTokyo logisticsfacilityprices(perunitarea)increased 0.5%qo-qand0.6%y-o-y, reflecting rental growth.Anotabletransaction wasMitsuiFudosan'slogisticsREITsaleoftwoproperties toWarburg Pincus.
Outlook
Continued soliddemand expansion frome-commerce andrising construction costsareexpected tosustainrental growth. However, whileprimelocations willseenotablerentincreases,properties in fringeareaswithhighvacancy ratesandincreased transportation costsareexpected toexperience rentaldeclines.
Althoughinterestratesareexpected torisefurther,yieldsareforecast toremain stableduetomanyinvestors alreadypreparing forrate increasesandcontinued solidinvestment demand fromcore investorssuchasinsurancecompanies. Consequently, realestate pricesareexpected tocontinue risinginareasandproperties experiencing rental growth.
Fundamentals
Note:TokyologisticsreferstotheGreaterTokyoprimelogisticsmarket.Datais
NLAbasis.
Historicalsupplyanddemandtrends
TokyoLogistics MarketDynamics Q32025
JonesLangLaSalleK.K.
Tokyo Headquarters
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Kansai
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Yodoyabashi Building
3-5-29KitahamaChuo-ku, Osaka541-0041
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Fukuoka
FukuokaDaimyoGardenCity 2-6-50Daimyo, Chuo-ku,Fukuoka-shi
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Nagoya
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+81528563357
Formoreinformation,pleasecontact
ManabuTaniguchi
Senior Director
Research-Japan
manabu.taniguchi@jll.com
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