The rapid growth in emergency demand caused by the earthquake disaster has recorded in the quarter ended March 2011, according to a survey by CB Richard Ellis. The vacancy rate for large multi-tenant logistics facilities in the capital area was 6.2%. The rate was down by 5.3 points compared with the preceding quarter ended December 2010. Approximately 80% of the new demand was for short-term contracts for six months or less.
Major reasons cited for tenant relocation were the destruction of current logistics facilities, the need to secure space as a result of collapsed loads and floor expansion due to increased inventory, etc.
CBRE pointed out the possibility that any delay in repairs to logistics facilities could cause contracts to shift from short term to long term and tenants in the existing facilities to concentrate in large, quality properties.
Targeted in the survey were 52 logistics facilities with 10,000 tsubo [33,000m2] or more of total floor space completed in March 2010 or earlier in Tokyo, as well as Chiba, Saitama and Kanagawa Prefectures.
