Japan Logistics MarketView Q2 2025

Rents rise in Greater Tokyo’s three inner areas,
but continue to fall in the Ken-o-do area

• The vacancy rate for Large Multi-Tenant (LMT) logistics facilities in Greater Tokyo fell by 0.2 pp q-o-q to 10.9% in Q2 2025. Two of the four new properties completed during the quarter commenced operations fully occupied, while large vacancies in existing assets were filled on the back of demand from sectors such as e-commerce. Overall effective rents slid by 0.2% from the previous quarter to JPY 4,480, but they rose in the three inner areas, including the Tokyo Bay area.

• The LMT vacancy rate in Greater Osaka stood at 5.6% as of the end of the quarter, up 1.8 pp q-o-q. While new supply was close to the record high for a single-quarter, demand was also strong, particularly for properties in the peripheral area. While overall effective rents remained unchanged q-o-q at JPY 4,230, they continued to rise in the central area attracting significant tenant interest.

• The LMT vacancy rate in Greater Nagoya rose by 3.3 pp q-o-q to 15.9%. While the quarter saw significant new supply, many properties that came on stream during the period were in prime locations, which served to stimulate tenant demand. Effective rents rose by 1.4% q-o-q to JPY 3,720, the largest single-quarter increase since the 2.3% rise recorded in Q1 2017.

• The LMT vacancy rate in the Greater Fukuoka fell 1.2 pp q-o-q to 3.0%. With new tenants confirmed for available units in existing properties, there are now only four properties in the entire of Greater Fukuoka with any vacancies. Effective rents rose by 0.3% q-o-q to JPY 3,580.