Osaka
• Vacancyratedeclines driven byhighoccupancy ofnewproperties andvacancy absorptioninexistingproperties
• Rentalgrowth ledbynew supplyproperties
• Solid investment demand from domestic investors
Solid demand andsubstantialnew supplyresultedinnetabsorption of236,000sqmin3Q2025.Demand came fromvarioussectors, includinge-commerce companies, 3PLproviders, andretailers.
Newsupplyin3Q2025totalled345,000sqmacrossthreebuildings, increasingtotalstockto8,069,000sqm,up4.5%q-o-q. Vacancy absorptionprogressed inexistingproperties whilenewsupply properties achievedgenerally highoccupancy upon completion, resultinginOsaka'soverallvacancy ratefalling37basispoints q-o-q to4.6%.Thisrepresents a153basispointsincreasey-o-y.
GrossrentinGreaterOsakareached JPY4,245pertsubopermonth, up0.9%q-o-q and2.4%y-o-y. Theoverallaverageincreased dueto higherrents commanded bynewsupplyproperties.
Reflecting stableinvestment yieldsandrental growth, theupward trend inOsakalogisticsfacilityprices(perunitarea)continues. Notabletransactionsincluded 50%stakesinESRAmagasakiDCand ESRFujiideraDC.Bothproperties attracteddomestic investors,
demonstrating solidinvestment demand fromdomestic playersfor logisticsfacilities.
Outlook:
Intheleasingmarket,multipleprojects arescheduled tobesupplied from4Q2025onward, butnumerous pre-commitments havebeen secured, andhighoccupancy upon completion isexpected. Vacancy ratesareexpected todecline toward year-end 2025,withlowvacancy ratesanticipated tocontinue through2026and2027.
Soaring construction costscontinue driving rental increasesfornew properties. Existingproperties arealsoexpected toexperience rental growthledbynewdevelopments. Whiletenant affordabilityremains aconcern,overallrentalgrowthacrossOsakaisexpectedtocontinue, given expanding e-commerce demand andvirtuallynovacancy in existingproperties.
Fundamentals
Note:OsakalogisticsreferstotheGreaterOsakaprimelogisticsmarket.Dataisonan NLAbasis.
Historicalsupplyanddemandtrends
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Formoreinformation,pleasecontact
ManabuTaniguchi
Senior Director
Research-Japan
manabu.taniguchi@jll.com Research
OsakaLogistics
MarketDynamics Q32025
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