And it's anticipated that Greater Osaka will do the same.

According to a recent report from Savills, the outlook for Japan’s logistics industry is becoming more positive, bolstered by robust long-term prospects.

“ Even though job openings have kept rising Owing to the significant influx of new properties entering the market over recent years, the reduced number of projects scheduled for the upcoming years ought to aid in filling current vacancies and contribute to stabilizing the market," according to the report.

Here’s more from Savills:

In recent times, even with steady and strong demand, an oversupply situation has led to a mismatch between supply and demand. Nevertheless, the logistics sector in Greater Tokyo is gradually approaching a pivotal moment, and the vacancy rate is anticipated to decline for the first time since 2020 come 2025.

Likewise, Greater Osaka is anticipated to mirror this pattern as it reaches an impending peak later this year. As we progress, the broader supply-demand equilibrium will likely become even more constrained, bolstered by robust market conditions fueled by expanding sectors such as e-commerce. This environment positions the logistics industry well for sustained expansion once it navigates through immediate supply discrepancies.

At first considered a drawback due to labor shortages, the "2024 problem" now seems to be compelling logistics providers to optimize their warehouse processes. Meanwhile, the scarcity of drivers has led numerous firms to implement relay distribution centers and techniques. The Ministry of Transport later declared intentions to support collaborative shipping initiatives aimed at boosting total productivity towards the end of 2024.

Moreover, the labor shortage issue has spurred an acceleration in technological advancements within logistics firms, encompassing self-driving vehicles, unmanned aerial vehicle deliveries, and artificial intelligence-driven distribution centers. With ongoing developments in these areas, the logistics industry is expected to progressively address various limitations, thereby enhancing its long-term growth potential.