Fukuoka
• Expansion relocationstorecently completed buildingsarenotableduetobusinessgrowth
• Vacancyratedropped by240bpsq-o-q to4.2%,mainlyduetoabsorptionofvacantspaceinFukuoka'slargestbuildings
• Rent growthrateaccelerated again,withmonthly rentatJPY22,509per tsubo,up3.1%fromtheprevious period
Netabsorption inFukuoka'sGradeAofficemarketreached 13,000sqminQ42025.WithnonewsupplyinQ4andminimalsecondary vacancy generation, demand wasdriven byexpansion relocations andin-building expansions duetobusinessgrowth. Byindustry, relocations were observed among professional servicesfirmssuchaslawfirmsandconsultingfirms,aswellasIT-related companies.
Thisquartersawsignificantprogress intenantleasingatONEFUKUOKABLDG.,whichboastsFukuoka'slargeststandardfloorplateareaof approximately 4,600sqm,contributing greatlytothevacancy ratedecline. Thevacancyrateattheend ofQ4reached 4.2%,down 240bpsq-o-q and280bpsy-o-y. Whilenew supplyfromTenjin BigBangandHakataConnected hascontinued intermittently, vacancyrateshadremained above5%since2023,butthisquartermarkedthefirsttimeinapproximately threeyearsthatthevacancy ratefellbelow5%.
Averagerentsreached JPY22,509per tsubopermonth attheend ofQ4,up3.1%q-o-q and7.9%y-o-y. Whilethepaceofrentgrowthhadshown signsofslowingsinceentering 2025,existingbuildingssawwidespread rentincreasesthisquarter,withthegrowthrateaccelerating once again.
Outlook
According toOxfordEconomics forecastsasofDecember 2025,FukuokaCity'srealGDPgrowthrateisprojected at+0.7%in2026and+0.5%in 2027.Onenewsupplyisscheduled forQ12026(Nishi-Nippon CityBuilding:Hakata-ku,totalfloorarea76,000sqm, Marchcompletion). Asthe newsupplyfromTenjin BigBangandHakataConnected approachesitsfinalphase,leasingconditions areexpected tobecome morefavorable tolandlords. In2026,threenew buildingsarescheduled fordelivery (totalNLA75,000sqm),andsecondary vacanciesareexpected toemerge as tenants relocate tonewbuildings,leading toananticipated riseinvacancy ratesonce again.
Fundamentals
2025NetAbsorption
2025Completions
s.m.
s.m.
Note: FinancialandphysicalindicatorsareforFukuoka’sGradeAofficemarket. DataisonaNLAbasis.
Netabsorption Newsupply Vacancyrate
Fukuoka Office|Q42025
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Tokyo Headquarters
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Fukuoka
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Fukuoka810-0041
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+81528563357
Formoreinformation,pleasecontact
YutoOhigashi
Senior Director
Research-Japan
yuto.ohigashi@jll.com
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