Fukuoka
• Activerelocation demand driven bytalentacquisitionstrategiesthroughimproved locationsandenvironments, aswellasnew workplace development
• Nishi-NipponCityBuildingcompleted withsmoothleasingprogress
• Rent reached JPY23,276per tsubopermonth, up3.4%q-o-q and9.5%y-o-y
Netabsorption inFukuoka'sGradeAofficemarketreached +5,000tsuboinQ12026.Relocation demand persistsfortalent-focused locations, improved environments, andnewworkplace creation. However, sometenantsarebecoming cautiousorabandoning movesduetorisingcosts, indicating aslightdeceleration indemand momentum.
Thisquarterthevacancy ratewas4.4%,up0.2pp q-o-q butdown 1.6ppy-o-y, duetolimitedactivityinexistingbuildings andsome remaining vacanciesinnewly constructed building.Nishi-Nippon CityBuilding(Hakata-ku,14floorsaboveground, totalfloorareaapproximately 22,900 tsubo)wascompleted. AllGradeAofficebuildingsupplyin2025wasintheTenjin area,makingthisbuildingthefirstnewsupplyintheHakata Stationareainapproximately twoyearssinceMarch2024.Tenant leasinghasprogressed smoothly, withWeWork, theleading flexibleoffice provider, announcing itsoccupancy oftwofloors.
Averagerentsreached JPY23,276per tsubopermonth, up3.4%q-o-q and9.5%y-o-y. High-renttransactionsinnewlysupplied buildings pushedupthemarketaverage.
Outlook
OneGradeAoffice buildingremainsinthe2026new supplypipeline (Tenjin BusinessCenter II:Chuo-ku,totalfloorarea19,000tsubo) scheduled forthesecond quarter.TheTenjin 1-7Project, originallyscheduled forcompletion inDecember 2026,hasbeen postponed to2027. Nevertheless, totalnewleasablefloorareain2026willbeapproximately 16,000tsubo,thelargestlevelinrecent years,andthevacancyrateis expected totemporarily riseto6.7%byyear-end 2026.However, rentsareexpected toriseapproximately 5.0%for2026,driven bythesupplyof newly constructed buildingswithpremium rentsamong GradeAproperties, aswellasincreasingupwardrent pressurefrominflation.
Fundamentals
Note: FinancialandphysicalindicatorsareforFukuoka’sGradeAofficemarket. DataisonaNLAbasis.
tsubo(thousands)
absorption Newsupply Vacancyrate
Fukuoka
Office|Q12026
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YutoOhigashi
Senior Director
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yuto.ohigashi@jll.com
HarukaMatsumaru Manager
Research-Japan
haruka.matsumaru@jll.com
Fukuoka
FukuokaDaimyoGardenCity
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Fukuoka810-0041
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Nagoya
JPTowerNagoya
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