Vacancy rate at large logistics facilities in Greater Tokyo decreases to 3.6% as rents move toward increase.CBRE today released data on rental market trends during the second quarter of 2012?for large multi-tenant logistics facilities in Greater Tokyo and Greater Osaka.
Noteworthy trends
During the second quarter of 2012, the vacancy rate in Greater Tokyo decreased 0.9 points to 3.6% in the fourth consecutive quarter of improvement. During this quarter, two buildings brought the first new supply to the market in approximately a year, and one of these facilities went into operation at full occupancy. In addition, the vacancy rate at existing facilities was down 1.7 points to 2.6% as vacancies continued to fill, with vacancies at neighboring facilities also becoming scarce. Due to this lack of supply at large buildings, signs of increasing rent levels were also observed.
Inquiries were active again this quarter as in the previous period, coming mainly from logistics firms and Internet retail distributors acquiring merchants that handle consumer goods. However, as the supply-demand balance tightened, the selection of industrial accommodations was limited, with some continuing to wait for new supply that is expected to come online during the next quarter. These factors contributed to an ongoing wait-and-see position among potential tenant firms.
In Greater Osaka, a large development was completed in May, the first in the three years since the second quarter of 2009, and the vacancy rate rose from 0.0% the previous quarter to 8.8%. However, numerous inquiries at the newly supplied facilities are being received, leading to expectations that the vacancies will soon be filled. In addition, existing facilities continue to operate at 100% occupancy.
?In Tokyo, amid firm demand at high-grade buildings coupled with a shortage of supply, the vacancy rate continues to improve, and rents are trending towards an increase,? said Junichi Taguchi, Managing Director of Industrial Services at CBRE. ?Given these circumstances, new players have a stronger appetite for acquiring development properties in addition to those already active in the market. Leasing is proceeding smoothly for buildings scheduled to be added to the market supply during the second half of 2012, and so the current tight supply-demand balance can be expected to continue.?
- Vacancy Rate computed at end of months: (1) March, (2) June, (3) September, (4) December Vacancies are those that are ready to receive tenants at time of survey (newly built facilities are those on which construction is complete).
For detailed analysis of market data and conditions for each metropolitan area, please review the ?Japan Industrial Market View Q2 2012,? published July 31, or visit our website at http://www.cbre.co.jp.
About CBRE Group, Inc.*
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world?s largest commercial real estate services firm (in terms of 2011 revenue). The Company has approximately 34,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 300 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our Web site at www.cbre.com?*As of October 3, 2011 the corporate group name was officially changed from ?CB Richard Ellis Group, Inc.? to ?CBRE Group, Inc.?. Accordingly, the registered corporate name of CB Richard Ellis K.K. in Japan has also changed to CBRE K.K., effective January 1, 2012.
DISCLAIMER: Neither CBRE nor its affiliated companies make any warranties or claims on the implied accuracy of the information contained herein.
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