Industrial Insights

"The logistics sector remains resilient, supported by robust demand. The declining development pipeline should tighten market conditions further. Investor sentiment remains strong, as reflected in elevated 2025 transaction volumes."

"The logistics sector has been resilient despite the large supply seen in recent years and is positioned for a brighter outlook as supply begins to ease. Investment sentiment remains strong, with high-value transactions making headlines over the fi rst half of 2025. The anticipated slowing in new supply after 2025 will give the logistics market further momentum for absorption. Additionally, logistics operators have been incorporating new technologies to enhance operational effi ciency to address labour shortages, further strengthening the sector’s resilience over the longer-term outlook."

"Japan's logistics sector has been resilient despite challenges in recent years, and is poised to reap the benefits in the midterm. As such, logistics assets have kept popular among investors, with large transaction volumes seen in 2024. While new supply will be elevated this year, the noticeable decline in new supply beyond 2025 will create more breathing room and support leasing activities among existing properties with vacant space. Additionally, many logistics operators have continued to enhance operational efficiency in response to chronic labour shortages, which should further strengthen the sector’s resilience and longer-term outlook."