Osaka
• Infull-year2024, newsupplytotaled 270,000sqm,markingthelargestfigure.
• Netabsorption amounted to+210,000sqm,alsotherecord high.Solid demand curbriseofvacancy ratesurge.
• Talent-oriented wasanotabledriver ofrelocation forbuildingstosuperiorlocationsand better-grades,inlinewithbusiness expansion
TheDecember TankanSurvey forGreaterOsakashowedthat businesssentiment fellto13pointsfrom14forlargemanufacturers andto28pointsfrom 33forlargenon-manufacturers. However, net absorptiontotalled +96,000sqmin4Q24,andfurtherreached +210,000sqmforthefullyear, markingthelargestfigure.Awaveof headquarterrelocations wasseenamong majormanufacturerswith highcostawarenessaspartofcorporate reform. Relocation demand seemed tobecome apparent, driven bycompanies forced to postpone buildingnew workplacesinatightsupply-demand market justpriortotheCOVID-19era.
Thenewcompletion in4Q24wasGrandGreen Osaka,amixed-use development covering offices,hotels,anopen innovation facility, commercial facilities,parksandresidentialareasin320,000sqmof GFA.The4Q24vacancy rateroseto4.4%,arelativelymodest increase of60bpsq-o-q and190bpsy-o-ydespite thelargestyearlysupply amount. Robustabsorption ofvacancies wasseeninnew completions, aswellasexistingbuildings,driven byconsolidation in
linewithbusinessexpansion andimprovements inlocation.
Theaveragemonthly grossrentpertsubowasJPY23,408,anincrease of2.1%q-o-q and4.0%y-o-y. Newcompletions withhigherrents pushedupthemarketaverage, asdidupwardrentrevisionsin existingbuildingswithhighoccupancy rates.
Outlook
Oxford Economics predicted inDecember thatOsakaCity'srealGDP wasprojected togrow by0.1%in2024and0.4%in2025.Intherental market,while2025willseesubstantialnewsupplywithtwobuildings, demand fornew buildingswithbetterandfavorablespecifications for workersremains solidduetotheriseincompanies’ interestintalent. Theriseinvacancy ratesisexpected tobemodest, asthistrend is likelytocontinue. Intheinvestment market,the2024yearly investment volume inGreaterOsakaexceeded JPY1trillion.Office dealswerebriskandofrow-level yieldswereseen. Whilesolid appetitesseemsettocontinue in2025,thedealvolume isexpected tofallduetoarebound from2024decreasing salesassets.
Fundamentals
Note:Financialandphysical indicatorsareforthe5KusGradeAofficemarket.Datais onanNLAbasis.
Historicalsupplyanddemandtrends
JonesLangLaSalleK.K.
Tokyo Headquarters
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Kansai
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Yodoyabashi Building 3-5-29KitahamaChuo-ku, Osaka541-0041 +81676628400
Fukuoka
DaihakataBldg. 2-20-1Hakata-ekimae, Hakata-ku,Fukuoka-shi
Fukuoka812-0011
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Nagoya
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Aichi450-6321
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Formoreinformation,pleasecontact
YutoOhigashi
Senior Director
Research-Japan
yuto.ohigashi@jll.com
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