Fukuoka
Fundamentals YTDnet absorption 16,084sqm
• Relocation demand fornewofficeopenings andupgrades comesfromindustriesincludingmanufacturing
• Vacancyratecontinues todecrease withlimitedsupplyofexistingbuildingswithgood attributes.
• Rents continue toedge upmarginally.
Netabsorption was1,500sqminQ32024.Relocation demand for newofficeopenings andupgrades camefromindustriesincluding manufacturing, information andcommunications, andfinancialand insurance. Kyudenko announced itsheadquarters relocation in spring2025,duetotheageing ofthecurrent buildingandtoadopt diversifying workstyles.Itwillmove totheOneFukuokaBldg, which willbeanewlandmarkbuildingupon completion inDecember 2024.
NonewsupplywasseeninQ32024.Thevacancyratereflected 5.2%, down 0.3pointsq-o-q and1.7pointsy-o-y. Thedecline wasobserved forthefifthconsecutive quarter. Thevacancy ratedecreased inGion, GofukumachiandNakasuareas,whererelativelynewcompleted buildingssawavacancy decrease onthebackoflimitedsupplyin existingbuildingswithgood attributes.
Rents averaged JPY20,218pertsubo,permonth in3Q24.Thiswasan increaseof0.2%q-o-q and1.9%y-o-yforthefifthconsecutive quarter
ofincrease. WhileHakataStation areasawrent growthontheback ofatightsupply-demand balance,aportion ofrelativelysubordinate buildingsadjustedrents,resultinginonly asmallincreaseoverall. Capitalvaluesdecreased 0.2%q-o-q andincreased 2.2%y-o-y, the firstfallinfivequarters.Rent-free periods remained mostlystable whileneteffective rentsfellslightly.Investment yieldsremained unchanged.
Outlook
Intheleasingmarket,vacancyratesareexpected toriseandplace downward pressureon rents;notwithstanding, demand isexpected toremain strong, given themajorvolume infuturesupplywhere therearesignsofanexpansion ofrent-free periods inforward commitments. Intheinvestment market,appetite forinvestments by J-REITs,local companies anddomestic andforeign institutional investorsremainshigh.Under thesecircumstances, investment yields arelikelytoremainstableordecline depending ontheproperty.
Note: FinancialandphysicalindicatorsareforFukuoka’sGradeAofficemarket. DataisonaNLAbasis.
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
Formoreinformation,pleasecontact
YutoOhigashi
Senior Director
Research-Japan
yuto.ohigashi@jll.com Research
FukuokaOffice
MarketDynamics Q32024
Fukuoka
DaihakataBldg. 2-20-1Hakata-ekimae, Hakata-ku,Fukuoka-shi
Fukuoka812-0011
+81922336801
Nagoya
JPTowerNagoya 1-1-1Meieki, Nakamura-ku,Nagoya-shi
Aichi450-6321
+81528563357
COPYRIGHT ©JONESLANGLASALLEIP,INC.2024
Thisreporthasbeenpreparedsolelyforinformationpurposesanddoesnotnecessarilypurporttobeacompleteanalysisofthetopicsdiscussed,whichareinherentlyunpredictable. It has been based on sources we believe to be reliable, but we have not independently verified those sources and we do not guarantee that the information in the report is accurate or complete. Any views expressed in the report reflect our judgment at this date and are subject to change without notice. Statements that are forward-looking involve known and unknown risks and uncertainties that may cause future realities to be materially different from those implied by such forward-looking statements Advice we give to clients in particularsituationsmaydifferfromtheviewsexpressed inthisreport. Noinvestment orotherbusinessdecisions shouldbemade basedsolelyontheviewsexpressed inthisreport.