Fukuoka
• Strong relocation demand coming fromvarioussectorsdrivesrobustnetabsorption
• Despiterisingoccupancy innew buildings,vacancyratesreachthe8%range, reflecting spaceavailabilityinmajornewsupply
• Rents continue agradualupwardtrend, driven bynew supplyandselectexistingbuildingsacrossthemarket
TheKyushu-OkinawaTankansurveyinJune2025was30,showinga 4-pointdecrease inDIforbusinesssentiment foralllargeenterprises; manufacturing deteriorated by4points, whilenon-manufacturing wasstable.Theemployment situationcontinued toshow movements ofimprovement. Demand remained robustin2Q25,with sectorsincluding construction, finance &insuranceandrealestate leasingservicesdrivingrelocations andnew officesetups.This increased occupancy innew buildingsandnewsupply. Net absorptionreached 23,000sqm, up22,000sqmy-o-y, bringing 1H25 totalto29,000sqm,anincreaseof14,000sqmy-o-y.
Thestockincreasedby8%q-o-q in2Q25.Tenjin Sumitomo LifeFJ BusinessCenter (NLA23,000sqm)andTenjin BrickCrossNorthTower (17,000sqm)entered themarket.Thevacancyrateincreased to8.7%, increasing280bpsq-o-q and310bpsy-o-y. Despitegradually decreasing vacancies innew buildings,thevacancyraterose, reflecting theavailablespaceinthenewsupply.
Rentsaveraged JPY21,573pertsubo,permonth in2Q25,increasing 1.5%q-o-q and6.9%y-o-y. Newsupplywasadriving factor,while soliddemand prompted upwardrentrevisionsinexistingbuildings acrossthemarket. Capitalvaluesincreased2.3%q-o-q and8.2%yo-y. Withinvestment yieldsremaining flat,theincreasesprimarily reflected risingrents.NoGradeAofficetransactionswereconfirmed duringthequarter.
Outlook
Oxford Economics forecastsFukuokaCity’srealGDPgrowthfor2025 at0.7%inJune, aslightupwardrevisionfrom March.Risksinclude theimpactoftradepoliciesinforeign economies.
Intheleasingmarket,robustdemand facesheadwindsfrom significantnew supply,whichisexpected tolimitvacancy improvements. Rents shouldremain stable,inpartreflecting new supply,butmaysoftenifvacanciesincrease. Theinvestment market outlookremainspositive, withsteadyyieldsexpected andpricesthat followrenttrends.
Fundamentals
Note: FinancialandphysicalindicatorsareforFukuoka’sGradeAofficemarket. DataisonaNLAbasis.
supplyanddemandtrends
FukuokaOffice MarketDynamics Q22025
JonesLangLaSalleK.K.
Tokyo Headquarters
KioiTower, Tokyo Garden TerraceKioicho
1-3Kioi-cho Chiyoda-ku, Tokyo 102-0094
+81343611800
Kansai
Nippon Life
Yodoyabashi Building
3-5-29KitahamaChuo-ku, Osaka541-0041
+81676628400
Fukuoka
FukuokaDaimyoGardenCity 2-6-50Daimyo, Chuo-ku,Fukuoka-shi
Fukuoka810-0041
+81922336801
Nagoya
JPTowerNagoya 1-1-1Meieki, Nakamura-ku,Nagoya-shi
Aichi450-6321
+81528563357
Formoreinformation,pleasecontact
YutoOhigashi
Senior Director
Research-Japan
yuto.ohigashi@jll.com
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