Goodman Group, the world's second-biggest industrial property manager by market value, plans to increase rents in Japan by about 5 percent amid rising land and construction costs.

Prices of land sites used for distribution centers and the cost of construction, which has climbed by as much as 20 percent, are making development more expensive, said Goodman Japan Ltd. CEO Paul McGarry.

Even as demand for modern warehouses and investor interest remain strong, the supply of such facilities will be limited, he said.