Osaka
• Officedemand expands duetoactivecapitalinvestment bycompanies, vacancyabsorption progresses
• Focuson leasingtrendsfornewly constructed buildingswithhighrentlevels
• Investment inOsakaisbooming, andcontinued growthofthetransactionvolumeisexpected.
TheSeptember TankanSurvey forGreaterOsakashowedthat businesssentiment roseto14pointsfrom10forlargemanufacturers, andthatoflargenon-manufacturers wasunchanged at33points. Net absorptiontotalled 16,000sqminQ32024.Companies withstrong performance relocated toimprove buildinggradeforrecruitment and efficiency. Relocations wereseeninmanufacturing(e.g., chemical industry),information andcommunications companies (e.g., softwaredevelopment),, andwholesaleandretailtradesectors.
Therewasone new completion inQ32024,PRIMEGATEUMEDA(Kitaku).LocatedneartheUmekitaarea(Northern UmedaandOsaka Station), itisa12-storeybuildingwithatotalfloorareaof15,000sqm. TheQ32024vacancy ratedeclined to3.8%,adecrease of30bpsq-oqbutanincreaseof110bpsy-o-y. Absorption wasseeninnewhighqualityandrelativelyinexpensive existingproperties.
Theaveragemonthly grossrentpertsubowasJPY22,935,anincrease
of1.1%q-o-q and1.8%y-o-y. Affordablebuildingsareseeingupward rentrevisionsduetohighdemand.
Outlook
According toOxfordEconomics forecastasofSeptember, Osaka City'srealGDPisexpected togrow by0.4%inboth2024and2025.In therentalMarket,soliddomestic demand andtheupcoming Kansai Expocontribute topositivecorporate sentiment andstrongdemand forofficespace. However, fewlargecompanies canaffordhighrents, andsomenewhigh-specandhigh-rentbuildingshavesubstantial vacancies. Tenant attractionprogressforupcoming largeproperties maypressureexistinghigh-rentproperties. Gradualrent decline and risingvacancy ratesareexpected fromQ32024toQ32025.Inthe investment market,theOsakaareaisbooming, particularlyinthe hotelandofficesectors.Solidinvestment appetite stimulatedby robustrentaldemand wasevident inlarge-scaleproperty transactions.Continued growthininvestment volume isexpected.
Fundamentals
Note:
and
Historicalsupplyanddemandtrends
Research
OsakaOffice MarketDynamics Q32024
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
DaihakataBldg. 2-20-1Hakata-ekimae, Hakata-ku,Fukuoka-shi
Fukuoka812-0011
+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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