Osaka
• Vacancyrate risesdue tovacanciesinnewlysupplied properties
• Steady demand continues,withexisting properties seeingvacancyabsorption
• Rentsexpected tocontinuerisingduetoincreased constructioncosts.
In3Q24,theOsakaareacontinued toseesteadydemand forlogistics facilities,withnetabsorption reaching242,000sqmduetodemand fornew properties andtake-upatexistingones. For1Qto3Q2024, netdemand totalled686,000sqm.
Thenewsupplyin3Qtotalled 297,000sqm,increasingthetotalstock by4%q-o-q and14%y-o-y to6,973,000sqm.GLPALFALINKIbaraki1 andDPLOsakaMaishimawere among thenewly suppliedprojects. TheoverallvacancyratefortheOsakaarearoseto3.0%,up0.7ppts q-o-q butdown 0.4ppts y-o-y. TheOsakaBayArea'svacancy rate increased by0.9ppts q-o-q to2.2%,whiletheInlandarearoseby0.4 ppts q-o-q to4.0%.
Rents increased toJPY4,145pertsubo,permonth, up0.6%q-o-q and1.8%y-o-y. Highrentsfornewproperties arepushingupoverall rents,soexistingproperties arealsoseeinggradualrentincreases, following thetrend ofnewproperties.
Reflecting therentincreases,capitalvaluesforlogisticsfacilitiesin theOsakaareacontinued toshowanupwardtrend.
Outlook
Theleasingmarketisexpected toseeincreased newsupplyinInland areasfrom2025onwards, likelyleadingtoariseinvacancy rates.The overallvacancyratefortheOsakaareaisprojected toincreaseto around6–8%.However, properties withcompetitive locations, buildingspecificationsandrentsareprogressing withprecommitments, suggesting highoccupancy ratesupon completion.
Newproperties areexpected tocontinue seeingrentincreasesdueto soaringconstruction costs.Existingproperties arealsolikelyto experience rent increases,driven bynewproperty rents. Whilethere areconcerns abouttenantabilitytobearhigherrents,existing properties continue tomaintainhighoccupancy rates,andrent increasesareexpected tocontinue.
Fundamentals
YTD
Note:OsakalogisticsreferstotheGreaterOsakaprimelogisticsmarket.Dataisonan NLAbasis.
Historicalsupplyanddemandtrends
s.m.(thousands)
Research
OsakaLogistics MarketDynamics Q32024
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