Japan Logistics MarketView Q3 2025

Record net absorption in Greater Tokyo’s Ken-o-do area 

and in Greater Osaka

• The vacancy rate for large multi-tenant (LMT) logistics facilities in Greater Tokyo in Q3 fell by 0.5 pp. q-o-q to 10.4%. Two of the three new properties completed during the quarter commenced operations at high occupancy rates, with strong demand from the consumer goods sector. Effective rents remained unchanged q-o-q at JPY 4,480, although they rose in the Tokyo Bay, Gaikando, and Ken-o-do areas, where vacancy rates dropped.

• The LMT vacancy rate in Greater Osaka stood at 5.0% in Q3, a drop of 0.6 pp. from the previous quarter. New supply topped 100,000 tsubo for the third straight quarter, reaching 113,000 tsubo across four new properties. Net absorption for the quarter reached a record high of 122,000 tsubo. In addition to expansions and the opening of new logistics bases, relocation to superior locations and consolidations were also observed. Effective rents rose by 0.7% q-o-q to JPY 4,260. Rents rose in the central area, where two new properties came on stream at high occupancy rates.

• The LMT vacancy rate in Greater Nagoya rose by 0.7 pp. q-o-q to reach 16.6%. With no new supply during the quarter, some vacancies were filled in recently completed properties, but several existing properties in suburban areas saw new vacancies emerge. Effective rents remained unchanged from the previous quarter at JPY 3,720.

• The LMT vacancy rate in Greater Fukuoka surged by 5.3 pp. q-o-q to reach 8.3%. New supply for the quarter consisted of three properties in Ogori City in Fukuoka Prefecture, both of which entered the market with significant vacancies. Effective rents fell by 0.3% q-o-q to JPY 3,570.