Global Logistic Properties Ltd., the overseas logistics unit of the Government of Singapore Investment Corp., plans to raise rents in Japan because of a shortage of newer storage and distribution facilities.
Global Logistic, which has a 99 percent occupancy rate in the country, plans to increase rents by about 5 percent to 10 percent, said Jeffrey Schwartz, deputy chairman of the company. Only about 2 percent of 480 million sq. meters of space are modern logistic facilities, he said, citing a report by Jones Lang LaSalle Inc.
The vacancy rate for warehouses in Tokyo fell by more than half to 7 percent in June from a peak of 20 percent in September 2009 due to a lack of new supply, according to CB Richard Ellis Group Inc. The March 11 earthquake that damaged and destroyed more than 46,000 nonresidential properties highlighted the need for newer facilities such as those equipped with ramps so trucks can move freight in and out.
"It's a horrible tragedy, but actually we have seen an increase in demand," said Schwartz in a recent interview in Tokyo. "It's a testimony of reasons why customers should be in modern space."
Singapore-based Global Logistic formed a joint venture with the Canada Pension Plan Investment Board, which manages 153.2 billion Canadian dollars ($157 billion).