OsakaOffice MarketSummary
Soliddemandpresentsinrentalmarket
Economy
TheMarchTankanSurveyforGreaterOsaka showedthatbusinesssentimentdroppedto6 pointsfrom13forlargemanufacturersandto30 pointsfrom35forlargenon-manufacturers.
DemandandSupply
Netabsorptiontotalled+95,000sqmin1Q24. Robusttenantactivitywasseenasupgrade, relocationwithexpansionandin-house expansiondrivenbyexpandingbusinessesfilled vacancies.
Therewerethreenewcompletionsin1Q24: MidosujiDaibiruBuilding(GFA20,000sqm)and UrbannetMidosujiBuilding(GFA42,000sqm)in Chuo-kuinJanuary,andJPTowerOsaka(GFA 227,000sqm)inKita-kuinMarch.
The1Q24vacancyrateroseto3.1%,anincrease of60bpsq-o-qandadecreaseof60bpsy-o-y. Althoughvacanciesinexistingbuildings continuedtobefilled,somenewcompletions withvacanciesdroveuptherate.
Physicalindicators
Take-up(net) Completions FutureSupply VacancyRate
For2019 to2023,take-up,completionsandvacancyrateareyear-end annual. For2024,thesearequarter-end.Futuresupplyis foryear-endof 2024.
Source:JLL
AssetPerformance
AveragemonthlygrossrentpertsubowasJPY 22,620,anincreaseof0.5%q-o-q,decreasing by0.8%y-o-yin1Q24.Newcompletionswith highrentspushedupthemarketaverage.
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Japan Research|
Q1 2024 May 2024 -1 0 1 2 3 4 5 6 -50 0 50 100 150 200 250 300 2019 2020 2021 2022 2023 2024 Percent Thousand sqm
Investmentmarketalsoactive
Capitalvaluesincreased1.0%q-o-qbut decreased1.6%y-o-yin1Q24,duetocurrent renttrends.Capratesremainedstable.
InvestmentMarket
TheofficeinvestmentvolumeinOsaka Prefecturein1Q24wasJPY103.5billion,an increaseof470.9%andof116.5%y-o-y.
AnotabletransactionwasSekisuiHouse Reit’s dispositionofHommachiGardenCity forJPY44.5billion.TheappraisalNOIyield was3.4%.Thepurchaserwasnotdisclosed.
Outlook
AccordingtoOxfordEconomicsforecastasof March,OsakaCity’srealGDPisexpectedto growto0.4%in2024andto0.1%in2025. Downsiderisksincludeeffectsofrawmaterial pricetrendsandlabourshortagestoward domesticeconomy.
Althoughdemandisrobust,forthcomingnew completionswithhighrentsexceedingmarket averagearelikelytohavemanyvacanciesdue toscarcityofpotentialtenants.Withloosening supplyanddemand,landlordsofthebuildings withlargevacanciesareexpectedtodecline rents.
Theinvestmentmarketisexpectedtoraise liquiditywithincreasedsalesactivitiesand investorappetiteforcompetitiveassets.
Source:JLL,1Q24
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FinancialIndices Dottedlinesindicatenear-termoutlook Indexbase:4Q19=100 Source:JLL 70 80 90 100 110 120 130 4Q19 4Q20 4Q21 4Q22 4Q23 4Q24 Index RentalValueIndex CapitalValueIndex
Property Clock
KeyPerformanceIndicators
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Occupationalmarket Investmentmarket Note: 1. VacancyrateandrentsrefertoGradeAofficemarket.Thedefinitionof GradeAisasbelowthetable. 2. .PropertyclockbasedonrentsforGradeAspaceinCBD,JLLdefined. 3. InvestmentvolumereferstoOsakaprefecture’sofficedirect commercialrealestateinvestmentvolume.
JLL,Q12024 Vacancyrate Q-o-Q Y-o-Y Osaka GradeAoffice 3.1% +60 bps -60bps Rents pertsubopermonth Q-o-Q Y-o-Y Osaka GradeAoffice JPY 22,620 +0.5% -0.8% Investment volume Q-o-Q Y-o-Y Osakaoffice 1Q2024 JPY103.5 billion +470.9% +116.5% OsakaGradeAofficedefinition Area DesignatedasofficeareabyJLLin Osaka5-kus(Kita,Chuo,Naniwa, Nishi,andYodogawa) Glossfloorarea 15,000 sqm(4,538tsubo)ormore Typicalfloorplate 600sqm(181tsubo)ormore BuiltYear 1990 ornewer
Source:
jll.com
JonesLangLaSalleK.K.
Tokyo Headquarters KioiTower, Tokyo Garden Terrace Kioicho 1-3Kioi-cho Chiyoda-ku, Tokyo 102-0094 +81343611800
FukuokaOffice
DaihakataBldg. 2-20-1Hakata-ekimae, Hakata-ku,Fukuoka-shi Fukuoka812-0011 +81922336801
OsakaOffice Nippon Life
Yodoyabashi Building 3-5-29KitahamaChuo-ku, Osaka541-0041 +81676628400
NagoyaOffice
JPTowerNagoya 1-1-1Meieki, Nakamura-ku,Nagoya-shi
Aichi450-6321 +81528563357
Contact
TakeshiAkagi HeadofResearch Research -Japan takeshi.akagi@jll.com
Takeshi Yamaguchi ResearchDirector JLLJapanOsakaOffice takeshi yamaguchi@jll.com
YukiMatsumoto Manager Research -Japan yuki.matsumoto@jll.com
About JLL
For over 200 years, JLL (NYSE: JLL), a leading global commercial real estate and investment management company, has helped clients buy, build, occupy, manage and invest in a variety of commercial, industrial, hotel, residential and retail properties. A Fortune 500® company with annual revenue of $20.8 billion and operations in over 80 countries around the world, our more than 108,000 employees bring the power of a global platform combined with local expertise. Driven by our purpose to shape the future of real estate for a better world, we help our clients, people and communities SEE A BRIGHTER WAYSM. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information,visit jll.com
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