Japan Logistics MarketView Q1 2025

Greater Tokyo vacancy rate rises to 11.1%;

Net absorption in Greater Osaka records second-highest figure

• The vacancy rate for Large Multi-Tenant (LMT) logistics facilities in the Greater Tokyo climbed by 1.3 pp. q-o-q to reach 11.1% in Q1 2025. The quarter saw the completion of 217,000 tsubo in a total of seven buildings, which came on stream at an average occupancy rate of just under 40%. CBRE also observed several cases in which tenants secured units before they appeared in vacancy data. Effective rents for Greater Tokyo fell by 0.2% q-o-q to JPY 4,490 per tsubo per month.

• The LMT vacancy rate in the Greater Osaka stood at 3.8%, up 0.1 pp. from the previous quarter. The supply-demand balance across Greater Osaka remained extremely tight. Net absorption for the quarter reached 102,000 tsubo, the second-highest quarterly figure since surveys began. Effective rents rose by 0.5% q-o-q to JPY 4,230 per tsubo per month.

• The LMT vacancy rate in the Greater Nagoya dropped by 0.8 pp. q-o-q to 12.6%. Leasing activity was robust, with all existing vacancies filled in Ichinomiya City, Aichi Prefecture, and a property due for completion in the area in Q2 2025 already fully pre-leased. Effective rents remained unchanged from the previous quarter at JPY 3,670 per tsubo per month.

• The LMT vacancy rate in the Greater Fukuoka fell 0.9 pp. q-o-q to 4.2% on the back of strong demand for properties located near the Fukuoka Interchange from companies in a wide range of sectors, including e-commerce, foodstuffs, and manufacturing. Effective rents rose by 0.8% q-o-q to JPY 3,570 per tsubo per month.