Brief | Intelligent Investment

Inflection Point: Japan Logistics Demand to Outpace Supply in 2027

August 26, 2025 3 Minute Read

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Against the backdrop of rising construction costs and a trend of declining rents, new supply of Large Multi-Tenant (LMT) logistics facilities in Greater Tokyo is expected to decrease significantly in 2027. According to CBRE's forecast as of Q2 2025, new supply in 2027 is projected to be 152,000 tsubo, the lowest level seen in about 15 years, while net absorption is expected to remain firm. As a result, the Greater Tokyo LMT market is expected to shift to a demand surplus in 2027, for the first time in six years.