Logistics consists of transportation and the logistics centers (distribution centers) that serve as transportation hubs. This section explains the logistics centers, which account for a large ratio of logistics costs, and the costs of the land.
When constructing a new distribution center with a site area of 3,000 tsubo and a total floor area of 1,800 tsubo (single-story) in Sagamihara City, Kanagawa Prefecture, the total budget estimate for the entire project is roughly 2.3 billion to 3.9 billion yen. We will explain the breakdown and approximate simulation of the "land purchase cost" and "building/construction-related costs" at this time.
This is a guideline for unit prices for land acquisition in industrial and semi-industrial zones (including areas around interchanges) within Sagamihara City.
| Area / Conditions | Estimated Land Unit Price per Tsubo | Total Acquisition Cost for 3,000 Tsubo |
|---|---|---|
| Suburban / Inland Areas (Midori Ward, etc. / Areas slightly away from ICs) | 350,000 - 450,000 yen / tsubo | 1.05 billion - 1.35 billion yen |
| Standard Industrial Zones (Chuo Ward, Minami Ward / Along national highways, etc.) | 450,000 - 550,000 yen / tsubo | 1.35 billion - 1.65 billion yen |
| Prime Locations (Close to Ken-O Expressway Hashimoto IC, Sagamihara IC, etc.) | 550,000 - 650,000 yen / tsubo | 1.65 billion - 1.95 billion yen |
Locations with good access along the Ken-O Expressway (Sagami Longitudinal Expressway) have high logistics demand, with many transactions seen at over 500,000 yen per tsubo.
Against the backdrop of soaring costs for construction materials (such as steel) and labor, unit prices for warehouses and logistics facilities remain at a high level. This is an estimate assuming a single-story steel-framed (S structure) logistics warehouse (high floor or low floor).
If the building area is 1,800 tsubo relative to a 3,000 tsubo site, the remaining 1,200 tsubo will be truck berths, parking lots, and turning areas.
| Item | [Standard / Low-cost Specifications] | [High-spec / Prime Location Specifications] |
|---|---|---|
| Land Purchase Cost (3,000 tsubo) | 1.20 billion yen (400k yen/tsubo) | 1.80 billion yen (600k yen/tsubo) |
| Building Main Body Construction Cost (1,800 tsubo) | 1.17 billion yen (650k yen/tsubo) | 1.53 billion yen (850k yen/tsubo) |
| Exterior and Civil Engineering Construction Cost | 0.08 billion yen | 0.12 billion yen |
| Design, Application, and Incidental Costs | 0.05 billion yen | 0.08 billion yen |
| [Total Cost (excluding tax)] | 2.50 billion yen | 3.53 billion yen |
* If large-scale material handling equipment, automated facilities (sorters, AMRs, automated warehouses, etc.), or office interiors and HVAC equipment are installed, an additional budget of tens of millions to hundreds of millions of yen is required in addition to the above.
Compared to conventional construction methods (custom design), the construction period can be shortened by about 20%, and the unit price per tsubo can be suppressed by about 15-20%.
Since Sagamihara City has many urbanization control areas, land that requires development permission (such as Article 34 of the City Planning Act) has a low land unit price, but there is a risk that development and preparation costs (civil engineering costs) could jump by tens of millions of yen.
This is the market rent unit price per tsubo for large leased logistics facilities (Advanced Logistics Facilities / LMT) in Japan's three major metropolitan areas (Tokyo Metropolitan Area, Kinki Area, and Chubu Area). The overall average (effective rent) for each area and the market price bands by detailed subdivision areas are summarized below.
| Area | Average Unit Price per Tsubo (Market Range) | Characteristics / Supply-Demand Balance |
|---|---|---|
| Tokyo Metropolitan Area | 4,300 yen - 4,600 yen / tsubo | Supply and demand are improving as the cycle of new supply runs its course. Bipolarization between bay areas and inland areas. |
| Kinki Area (Kansai Region) | 4,100 yen - 4,300 yen / tsubo | Supported by solid demand, showing a gradual upward trend centered on the Osaka inland and bay areas. |
| Chubu Area (Nagoya Region) | 3,600 yen - 3,800 yen / tsubo | Vacancy rates are at a high level due to massive supply, but rents are stable primarily for prime location properties in the central area. |
The market rent for leased logistics facilities (warehouses and distribution centers) within Sagamihara City is broadly divided into 3 regions within the city, depending on access to Ken-O Expressway Interchanges (ICs) and the ease of securing personnel in the surrounding area.
| Regional Classification | Main Target Areas / ICs | Market Rent Range (Excluding CAM) | Characteristics / Supply-Demand Environment |
|---|---|---|---|
| ① Southern / Central Area (Urban area / Along Route 16) |
Along National Route 16, along the JR Yokohama Line (Minami Ward, eastern Chuo Ward, around Kobuchi/Fuchinobe) |
4,500 yen - 5,500 yen / tsubo | Easy to secure personnel / For last mile Close to residential areas, advantageous for hiring part-timers. High demand as delivery hubs, the highest price range in the city. |
| ② Inland / Around ICs Area (Concentration of advanced logistics facilities) |
Around Sagamihara IC / Aikawa IC (Tana in Chuo Ward, Asamizodai in Minami Ward, Shimokuzawa in Midori Ward, etc.) |
4,000 yen - 4,800 yen / tsubo | Hubs for wide-area distribution (Centered on large multi-tenant facilities) Outstanding access to the Ken-O Expressway. Large advanced logistics facilities are concentrated here, with abundant supply. |
| ③ Northern / Western Mountainous Area (Suburbs / Around mountainous areas) |
North of Hashimoto IC, around the former Tsukui Town area (Shiroyama, Tsukui, around Lake Sagami in Midori Ward, etc.) |
3,200 yen - 3,800 yen / tsubo | Cost-oriented / For storage-type warehouses Rents are relatively cheap due to distance from expressway ICs and stations. Geared toward long-term storage with low delivery frequency and in-house operation. |
* Common Area Maintenance (CAM) / Management fees generally incur an additional 400 yen - 700 yen / tsubo.
When leasing (renting) a logistics facility, in addition to the monthly "base rent," there are many expenses incurred related to the building and facilities.
This is a Total Cost of Ownership (TCO) comparison over 10 years between "In-house Construction (Ownership)" and "Using a Leased Property for 10 years" for a distribution center with a total floor area of 1,800 tsubo (site 3,000 tsubo).
| Cost Item | ① In-house Construction (Ownership) | ② Leased Property (10-year use) | Remarks / Supplementary Info |
|---|---|---|---|
| Initial Investment (CAPEX) | 3.00 Billion Yen | 0.12 Billion Yen | ① Land 1.5B + Building 1.5B ② Security deposit 6 mos. + Category C works, etc. |
| Monthly Fixed Payments (10-year cumulative) | 0 Yen (Excluding loan repayment) | 1.08 Billion Yen | Rent + CAM (9 million yen/month × 120 months) |
| Taxes and Public Charges (10-year cumulative) | Approx. 0.28 Billion Yen | 0 Yen | Fixed asset tax and city planning tax for land and building |
| Repairs, Maintenance, Insurance (10-year cumulative) | Approx. 0.15 Billion Yen | Approx. 0.06 Billion Yen | Exterior wall/roof, various equipment inspections, fire insurance |
| [Total Expenditure (Cash) over 10 years] | 3.43 Billion Yen | 1.26 Billion Yen | Cumulative pure cash out |
| "Retained Residual Value" after 10 years | ▲ 2.20 Billion Yen (Asset) | 0 Yen (No asset) | Land (Value maintained 1.5B) + Building (Remaining depreciation approx. 0.7B) |
| [Actual Retention Cost over 10 years] | 1.23 Billion Yen | 1.26 Billion Yen | Total expenditure minus unrealized asset value after 10 years |
| Cash Outflow / Cost Item | ① In-house Construction (3 Billion loan, 20-year repayment) | ② Leased Property (10-year use) | Difference / Remarks |
|---|---|---|---|
| Initial Own Funds (CAPEX / Security Deposit) | 0 Yen (Assuming full loan) | 0.12 Billion Yen | ② Security deposit 6 mos. + Category C works |
| Monthly Fixed Payments (10-year cumulative) | 1.738 Billion Yen (Repayment) | 1.080 Billion Yen (Rent + CAM) | ① 14.48M yen/mo × 120 mos ② 9.00M yen/mo × 120 mos |
| Fixed Asset Tax / City Planning Tax (10 years) | Approx. 0.280 Billion Yen | 0 Yen | ① Public charges for land and building |
| Maintenance, Repair, Insurance Costs (10 years) | Approx. 0.150 Billion Yen | Approx. 0.060 Billion Yen | ① Exterior wall, roof, inspections, fire insurance, etc. |
| [Total Cash Out over 10 years] | 2.168 Billion Yen | 1.260 Billion Yen | Difference in cash outflow: ① is +0.908 Billion Yen more |
| Asset Value after 10 years (Real Estate Value) | 1.500 Billion Yen (Unrealized land value) | 0 Yen | ① Assuming land price is the same as when purchased |
| Liability Amount after 10 years (Remaining Loan) | ▲ 1.618 Billion Yen (Loan balance) | 0 Yen | ① Still has 10 years of repayment remaining |
| [Net Asset Impact after 10 years] | ▲ 0.118 Billion Yen | 0 Yen | Assets 1.5B - Liabilities 1.618B |
| [10-Year "Actual Burden Amount"] | 2.286 Billion Yen (Total outflow 2.168B + Deficit 0.118B) | 1.260 Billion Yen | Actual burden including net asset movements |