CBRE Investment Management has bought a 69,045-square-meter parcel of land in Tokyo on behalf of the CBRE Asia Value Partners VI fund.
The fund plans to develop the site into a modern logistics facility, which will be known as the Katsushika Logistics Center.
CBRE IM said the development aligns with growing demand from Tokyo’s expanding last-mile logistics community.
The multi-tenant facility will feature ample parking and loading dock spaces, approximately 18-foot ceiling heights across all floors, air conditioning, and a two-sided ramp allowing transportation access to all stories of the building.
The site offers convenient access to several major thoroughfares, including the Metropolitan Expressway, Tokyo Municipal Road 318 (Ring Route 7), and Tokyo Outer Ring Road linking the proposed facility to the key metropolitan districts of the Greater Tokyo area.
“We are delighted to have completed on this acquisition as we continue to broaden our reach across the logistics market in Japan. The strategic location of this site offers a prime opportunity to develop a Class A logistics facility that will appeal to a variety of e-commerce operators who need storage and distribution solutions close to the Tokyo population center. Given the scarcity of such quality assets, we expect this facility to provide long-term value for both the future tenants and our investors as an exclusive last-mile distribution hub,” said Adrian Baker, Chief Investment Officer, APAC Direct Real Estate Strategies, for CBRE Investment Management.
Demand for quality logistics facilities remains high in the Katsushika City area, said CBRE IM.
According to CBRE’s research, the average vacancy rate in the area was at a record low of 1.3% as of third quarter 2021 and is projected to decrease to 1% by the end of 2022.
Additionally, Greater Tokyo is the most populous metropolitan area in the world with a population of 39.5 million people as of December 2021. The large population of the area has helped drive demand for logistics spaces given the higher rates of consumer consumption and e-commerce activity amid the global pandemic.