Fukuoka
• Tenjin BusinessCenterIIcompletes, markingthebeginning ofthefinalstageofthelarge-scalesupplycycle thatstartedin2021
• Vacancyraterisesto6.4%asnewly completed buildingdeliver withavailablespace,whilevacancy inexistingbuildingscontinues to decline
• Averagemonthly rent pertsuboreachesJPY23,852,up2.5%q-o-q and10.6%y-o-y
Netabsorption inFukuoka'sGradeAofficemarketreached +6,000tsuboinQ22026.Relocation demand aimedatimproving officelocation and workplace environments remained robust.Whilerelocations tonewly completed buildingswereprimarilydriven bylargeoccupiers, the broadermarketcontinued tobeledbysmallandmedium-sized tenantsupgrading fromGradeBandlower-grade officebuildingstoGradeA buildings.
Thisquarterthevacancy ratewas6.4%,up2.0pp q-o-q, mainlyduetonewlycompleted buildingdelivering withvacantspace.Vacantspacein high-gradebuildingscompleted duringtherecent supplycycle hasaccumulated, providing tenantswithawiderrangeofrelocation options. As aresult,more tenants aretakinglonger toevaluatepotential officelocations, leading toagradualslowdown inthepace of vacancy absorption.
Averagerentsreached JPY23,852per tsubopermonth, up2.5%q-o-q and10.4%y-o-y. Rental growthcontinued tobedriven bynewly completed andrecently builthigh-gradeoffice.
Outlook
Asthecurrentsupplycycleenters itsfinalstageandallGradeAofficecompletions scheduledfor2026havealreadybeen delivered, leasing activityisexpected togainfurthermomentum innewly completed andrecently builtbuildings.Vacancycreated bynewsupply islikelytobe absorbedgradually,supporting acontinued decline intheoverallmarketvacancyrate.However, thepaceofvacancy absorptioninnewly completed andrecently builthigh-gradebuildingshasslowed, withleasingperiods becoming longer. Asaresult,rentalgrowthmaybeginto moderate going forward. Forfull-year2026,rentsareprojected toincreasebyapproximately 7.5%.
Fundamentals(forthisquarter)
Note: FinancialandphysicalindicatorsareforFukuoka’sGradeAofficemarket. DataisonaNLAbasis.
Historicalsupplyanddemandtrends
tsubo(thousands)
Fukuoka
Office|Q22026
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3-5-29KitahamaChuo-ku, Osaka541-0041
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Fukuoka
FukuokaDaimyoGardenCity 2-6-50Daimyo, Chuo-ku,Fukuoka-shi
Fukuoka810-0041
+81922336801
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JPTowerNagoya
1-1-1Meieki, Nakamura-ku,Nagoya-shi
Aichi450-6321
+81528563357
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Senior Director
Research-Japan yuto.ohigashi@jll.com
HarukaMatsumaru Manager
Research-Japan haruka.matsumaru@jll.com
HiroshiOkubo HeadofResearch
Research-Japan hiroshi.okubo@jll.com
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