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TOKYO-If any place could use more storage space, it would bethis archipelago, and not just by being the most land constrainedand densely populated country of the industrialized world.According to a new report from ProLogis, numerous other factorshave created Japan's vastly undersupplied warehouse/distributionnetwork, one struggling to keep up with the resurgent economy but asector ripe with opportunities for third-party developers toaddress the crisis.

"Looking ahead, Japan's logistics property network would appearto have substantial room for growth," according to the 20-pagereview, which was authored by Leonard Sahling of ProLogis and JohnTofflemire, president of Sapient Real Estate Consulting in Tokyo.ProLogis is among a handful of firms that has built for-lease spacein Japan, having completed 19 properties encompassing 10.5 millionsf with another 5.7 million sf under way, all since its initialforay in 2002. The space is 100% leased, ProLogis says.