Prologis Inc., the world's biggest warehouse owner, plans to increase rents and spend as much as $600 million a year to develop facilities in Japan as Prime Minister Shinzo Abe pursues policies to boost corporate confidence.
The company expects rents to rise about 3 percent annually "for a while" and will invest $500 million to $600 million a year in warehouses, said Hamid Moghadam, chairman and chief executive officer of San Francisco-based Prologis.
Abe's pledge to end 15 years of deflation and the Bank of Japan's monetary-easing policy, dubbed "Abenomics," have boosted sentiment, contributing to a recovery in the nation's property market. Industrial spaces, such as warehouses, returned 7.6 percent on average for the year that ended in July, more than double that for office buildings, according to London-based Investment Property Databank Ltd.