Logistics

Some market participants say that logistics properties are still supported by a strong demand in the market. That is at least a good news. Think of logistics properties, the owner usually enters into a long-term lease with tenants, which are viewed as stable and similar to credit investments. On the front of macro economics, I think economic activities have certainly an impact upon the demand for logistic properties. Corporate Japan has tried to increase its productivity over the past years, and its effort to reduce an inventory volume of goods also has an impact upon the demand for warehouses. To look at the distribution stream carefully, companies like Toyota has tried to reduce an inventory of parts via its "Kanban" method; in reality, parts makers might need to make such parts ready for Toyota. If this logic is right, the overall demand for logistics properties might be stronger that I thought.