Japanese earthquake prompts investment in logistic firms

WHEN Prologis built Japan’s first logistics centre in 2002 — offering inventory management, storage and distribution services — potential clients and lenders told the company to invest in malls or apartments instead.

“Investment in logistics facilities was unheard of in Japan,” said Tokyo-based Miki Yamada, president of Japan operations at Prologis, the world’s biggest warehouse owner. “Everyone said it doesn’t work and no one was interested.”

Now, Japan’s distribution centres are rebounding from record-high vacancies two years ago amid demand for modern storage after the March 11 earthquake and tsunami destroyed industrial spaces, drawing investors looking for returns amid a slump in the office market.