Japan Research|
May 2024
OsakaLogistics MarketSummary
Q1
2024
Although supply is high, leasing of new completion is strong
DemandandSupply
Soliddemandforlogisticsfacilitiescontinued in1Q24,resultinginanetabsorptionof 319,000sqm,drivenbythedemandfornew completionsandtheabsorptionofvacancies inexistingproperties.
Newsupplyoffourfacilitiestotalled329,000 sqmin1Q24,andthestock(totalleasable area)increasedby5%q-o-qand10%y-o-yto 6,617,000sqm.Threeofthenewcompletions (includingoneBTSfacility)were100%precommmitteduponcompletion.
Thevacancyratestoodat3.4%atend-1Q24, remainingflatq-o-qanddecreasing20bpsyo-y.ThevacancyrateintheBayareastoodat 1.2%,decreasing50bpsq-o-q,whileInland areastoodat6.0%,increasing50bpsq-o-q.
KeyPerformanceIndicators
Physicalindicators
Source:JLL,
©2024 JonesLangLaSalleIP,Inc.Allrightsreserved. 1 | Osaka Logistics Market Summary
2023,take-up,completions
vacancyrate
year-end annual.Futuresupply reflectsfiguresfor2024.
For2019 to
and
are
Vacancyrate Q-o-Q Y-o-Y GreaterOsaka 3.4% 0bps -20bps Rents pertsubopermonth Q-o-Q Y-o-Y GreaterOsaka JPY4,126 +1.0% +1.3% 0 2 4 6 8 10 0 200 400 600 800 1,000 1,200 2019 2020 2021 2022 2023 2024F Percent Thousand sqm Take-up(net) Completions FutureSupply VacancyRate
Rents continue to rise due to solid demand and rising costs
AssetPerformance
RentsaveragedJPY4,126pertsuboper monthatend-1Q24,increasing1.0%q-o-q and1.3%y-o-y.Thehigh-levelrentsofnew completionscontinuedtopushupoverall rents.Existingpropertieshavealsoseenrental increases,buttheincreaseisgradual.
InvestmentMarket
CapitalvaluesinGreaterOsakacontinuedto increase,reflectingcapratecompressionand stablerentgrowth.Therearecasesinwhich recentlybuiltpropertiesaretransactedbefore tenantsaredecided.
Outlook
Intheleasingmarket,newcompletionis expectedtoincrease,especiallyinInlandareas, andthetrendofincreasingvacanciesis expectedtocontinue.InGreaterOsaka,the vacancyratewillrisetoaround8%.However, leasingforpropertiesingoodlocations,such asconcentratedlogisticsfacilitiesarea,is progressingwellandtenantshavebeen decided,soitisexpectedthattheproperties willbefullypre-committeduponcompletion.
Rentsareexpectedtocontinuetorisefornew completionduetosoaringconstructioncosts. Existingpropertiesinthesurroundingareaare alsoexpectedtoseegradualriseinrents, drivenbynewcompletion.Newcompletions continuetohavehighpre-committedrate,and rentsareexpectedtocontinuetorise.
Intheinvestmentmarket,capratesmay compressfurtheramidcontinuedinvestor interest.
FinancialIndices
GlobalProperty Clock
Source:JLL
Source:JLL USpositionsrelatetotheoverallmarket
©2024 JonesLangLaSalleIP,Inc.Allrightsreserved. 2 | Osaka Logistics Market Summary
80 90 100 110 120 130 140 4Q19 4Q20 4Q21 4Q22 4Q23 4Q19 = 100 RentalValueIndex CapitalValueIndex
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