2025
Osaka
• Rent reachesrecord highofJPY25,420per tsubopermonth aftersevenconsecutive quartersofgrowth.
• Continued demand forhumanresourcestrategypurposes,withaseriesofrelocations toUmeda andalong Midosuji
• Vacancyratesdrop to2.5%asbothnewandexistingbuildingsseerapiddecline ofvacantspace
TheSeptember TankanSurvey forGreaterOsakashowedthat businesssentiment fellto13pointsfrom14forlargemanufacturers andto30pointsfrom 33forlargenon-manufacturers. Netabsorption totalled+22,000sqminQ32025.Themaindemand driver remained asrelocationsfortalentacquisition, withcompanies upgrading workplace environment andcorporate image.
TheQ32025vacancy ratefellto2.5%,adecrease of80bpsq-o-q and 130bpsy-o-y. Withthelimited availabilityoflargefloorsintheOsaka market,tenants soughttosecurefloorsquickly,resultinginadecline invacancy ratesinawiderangeofareas.Demand isparticularlyhigh inUmeda andalongMidosujibetween Yodoyabashi andHonmachi. Therewere nonewcompletions inthequarter. YodoyabashiStation One, whichcompleted previous quarterwithNLA39,000sqmhas seensteadyabsorptionprogress andisnow approximately 80% occupied.
Theaveragemonthly grossrentpertsubowasJPY25,420,anincrease of3.2%q-o-q and10.8%y-o-y. Theprevious rentalpeak was approximately JPY24,600inQ22020.TheOsakamarkethasreached anew levelinthequarter.Capitalvaluesincreased by3.5%q-o-q and 15.5%y-o-yinQ32025,driven bycurrentrenttrends. Caprates remained stablefromtheprevious quarter.
Outlook
Themanifestationofsecondary vacancieswillbedelayed dueto soaringconstruction costsanddelaysinrestorationworkcausedby labourshortages.Whilelargetenantactivitybymajorcorporations appearstohavecompleted one cycle, mid-tiercompanies are becoming more active,suggesting strongdemand willcontinue. As forrents, thetrend ofrisingrentsisexpected tocontinue overthe long term,buttherateofincreaseisexpected tomoderate inthe future,asthenumber ofavailableproperties thatwillcauserentsto rise,astypified bynewconstruction inUmeda, willbecome limited.
Fundamentals
net absorption
completions
Note:Financialandphysical indicatorsareforthe5KusGradeAofficemarket.Datais onanNLAbasis.
Historicalsupplyanddemandtrends
(thousands) Netabsorption Newsupply Vacancyrate
Office MarketDynamics Q32025
Jones Lang LaSalle K.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
FukuokaDaimyoGardenCity 2-6-50Daimyo, Chuo-ku,Fukuoka-shi
Fukuoka810-0041
+81922336801
Nagoya
JPTowerNagoya 1-1-1Meieki, Nakamura-ku,Nagoya-shi
Aichi450-6321
+81528563357
For more information, please contact
YutoOhigashi
Senior Director
Research-Japan
yuto.ohigashi@jll.com
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