Research Osaka Logistics Market Dynamics Q1 2026
Osaka Fundamentals •
Demand for new and recently built properties significantly exceeds supply
•
Vacancy rate expected to remain in the 2% range in 2026 due to reduced supply
•
Rents continue to rise in landlord-favorable market environment
YTD net absorption YTD completions Vacancy rate Gross rent Rent growth Y-o-Y Stage in rental cycle
48,000 tsubo. 24,000 tsubo. 2.1% JPY 4,303 per tsubo p.m. +2.8% Rents Rising
Note: Osaka logistics refers to the Greater Osaka prime logistics market. Data is on an NLA basis.
Stable demand absorbed existing vacancies, with net absorption in Q1 2026 reaching 48,000 tsubo. Demand was observed for several recently built properties that had remained vacant due to asking rents above market levels. New supply consisted of one property (24,000 tsubo) in the Kyoto area, which was fully leased at completion. While multiple large-scale logistics facilities are scheduled for delivery in the Kyoto area, this result suggests strong demand for the area. Combined with absorption of existing vacancies, the overall vacancy rate for Greater Osaka declined 1.0pp q-o-q to 2.1%. Rents in Greater Osaka stand at JPY 4,303 per tsubo per month, up 0.3% q-o-q and 2.8% y-o-y. Rent increases for recently built properties are rippling through to asking rents for existing properties.
Although estimated cap rates rose slightly in response to rising bond yields, capital values remained almost flat due to rent increases. Outlook: In the leasing market, new supply in 2026 is expected to decline significantly compared to the previous year, and stable demand is anticipated to keep the vacancy rate at a low level in the 2% range. From 2027 onward, new supply will be concentrated in the Kyoto area, with limited development plans elsewhere. As a result, areas outside Kyoto are expected to become extremely tight. Additionally, rents for new properties are expected to rise further, reflecting rising construction costs, with continued spillover effects to existing properties. Given the high occupancy of existing properties, a landlord-favorable market environment will continue, and the upward rent trend across Greater Osaka is expected to persist. Osaka logistics definition
Area
Osaka, Hyogo, Kyoto, Shiga and Nara
Gross Floor Area
Historical supply and demand trends tsubo (thousands) 500
5%
400
4%
300
3%
200
2%
100
1%
0
0% 2021
2022
2023
2024
2025
Net absorption
New supply
50,000 sqm (15,125 tsubo) or more
Built Year
YTD 2026
Vacancy rate 2000 or newer
© Jones Lang Lasalle IP, Inc. 2026