Greater Tokyo to see over 1.4m sqm of new logistics supply in H1 2025

The largest development spans 165,000sqm.

In a recent report, Savills noted that Greater Tokyo witnessed over 3.2 million sq m GFA of new logistics supply coming to market in 2024, approximately 30% lower than the peak supply in 2023.

“The largest completion introduced in the second half of 2024 was the 256,000 sq m MFLP·LOGIFRONT Tokyo Itabashi, the largest logistics facility located in the 23W. Strategically positioned close to the city centre, with the Tokyo Metropolitan Expressway nearby, the facility will be the area’s first drone testing site for last-mile delivery and emergency relief transport,” the report added.

Here’s more from Savills:

The first half of 2025 looks to welcome over 1.4 million sq m GFA of new supply in Greater Tokyo, and the largest development to be added to the market is the tentatively named ESR Yokohama Sachiura Distribution Centre 3. To be completed in February 2025, the facility has a total GFA of 165,000 sq m.

Upon full completion of the four-phase project, ESR’s Yokohama Sachiura Logistics Park will be Japan’s largest logistics park, spanning approximately 720,000 sq m and valued at approximately US$2.5 billion at completion.

The new supply forecast in 2025 will continue to fall from the 2023 peak driven by rising construction costs and labour shortages. As such, the subdued new supply should provide an opportunity to absorb secondary vacancies and may slow the rising vacancy trend.