Fukuoka
• Fukuokaofficerentsrise1.2%toJPY21,835pertsuboasgrowthmomentum slows
• Expansion relocationsduetobusinessgrowtharenotable
• Vacancyratedropssignificantlyto6.6%,down 2.1percentage pointsfromtheprevious period, asnewly constructed buildings absorbedvacantspace
According totheSeptember Kyushu-OkinawaTankansurvey,the businessconditions DIforlargemanufacturingcompanies was31 points(from25pointspreviously), whilenon-manufacturing was27 points(from30pointspreviously).
Withnonewsupplyinthethirdquarterandminimalsecondary vacancy generation, expansion relocations duetobusinessgrowth werenotable, resultinginnetdemand of11,000sqm.
Thevacancyrateattheend ofthethirdquarterwas6.6%,down 2.1 percentage pointsfromtheprevious quarterandup1.4percentage pointsy-o-y. Since 2021,continuous new supplyfromtheTenjin Big Bangdevelopment andsignificanttenantleasingattheTenjin
Sumitomo LifeFJBusinessCentercontributed tothevacancyrate decline. Currently, clearpolarisationhasemerged, withtheTenjin areahavingover 300,000squaremeters ofvacantspace,whilethe HakataStation areahasvirtuallynovacancies.
Rent attheend ofthethirdquarterwasJPY21,835pertsuboper month, up1.2%fromtheprevious quarterandup8.0%y-o-y. The acceleration ofrentincreasesdriven bynewly suppliedbuildingshas runitscourse,withthepaceclearlydecelerating from2025onward.
Outlook
According toOxfordEconomics' Octoberforecast, FukuokaCity'sreal GDPgrowth rateisexpected tobe1.2%in2025and0.5%in2026.In therentalmarket,newsupplyfor2025hasbeen exhausted.
Secondary vacancy generation isalsoexpected toremainlimited, so thevacancy rateattheend of2025willlikelydecline slightly.Rents havecontinued toriseasnewly suppliedbuildingspushedupthe overallmarketlevel. However, threenewbuildings(totalleasable areaof75,000sqm)arescheduledfor2026,makingareturntorising vacancy ratesunavoidable. Underthesecircumstances, rentswill unlikelyrisesignificantlydriven bynew supplybuildings asinthe past.Rental trendswilllikelydiverge between newconstruction and existingbuildings.Intheinvestment market,yieldswilllikelyremain flatasinvestorscontinue toshowstronginvestment appetite.
Fundamentals
Stage inrental cycle Rents Rising
Note: FinancialandphysicalindicatorsareforFukuoka’sGradeAofficemarket. DataisonaNLAbasis.
supplyanddemandtrends
FukuokaOffice MarketDynamics Q32025
JonesLangLaSalleK.K.
Tokyo Headquarters
KioiTower, Tokyo Garden Terrace Kioicho
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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