Research Osaka Logistics Market Dynamics Q2 2025
Osaka Fundamentals •
Vacancy rate increases due to multiple new projects
•
Area expansion due to property supply in new locations
•
Existing properties have few vacancies and rents continue to rise
YTD net absorption YTD completions Vacancy rate Gross rent Rent growth Y-o-Y Stage in rental cycle
516,678 s.m. 698,663 s.m. 4.9% JPY 4,206 per tsubo p.m. +2.1% Rents Rising
Note: Osaka logistics refers to the Greater Osaka prime logistics market. Data is on an NLA basis.
In 2Q25, strong demand and substantial new supply resulted in a net absorption of 236,000 sqm. Demand came from various sectors, including e-commerce companies, 3PL providers and retailers. In Greater Osaka, the difference in demand based on location was not considered as significant as in Greater Tokyo. There was a new supply of 366,000 sqm across four buildings, bringing the total area in stock to 7,724,000 sqm, a 5.0% increase q-oq. While vacancies in existing properties were absorbed, new supply increased the overall vacant space. The overall vacancy rate in Greater Osaka rose to 4.9%, up 152 bps q-o-q and 259 bps y-o-y. Gross rent in Greater Osaka was JPY 4,206, up 0.5% q-o-q and 2.1% yo-y. Despite new supply in expanded areas coming in at belowaverage rents, the overall average increased due to rent growth in existing properties.
With stable investment yields and rising rents, logistics facility prices (per unit area) in Greater Osaka continue to trend upward.
Historical supply and demand trends
Outlook:
1,200
6%
1,000
5%
800
4%
600
3%
400
2%
200
1%
In the leasing market, multiple new supply additions are expected in the second half of 2025, but many pre-leasing agreements have already been concluded, suggesting high occupancy rates upon completion. The vacancy rate is expected to decline towards the end of 2025. Rising construction costs continue to drive rent increases for newly built properties. Existing properties are also expected to see rent increases, pulled up by new supply properties. While there are concerns about tenants' ability to bear higher rents, continued rent growth is expected across Greater Osaka due to growing ecommerce-related demand and the lack of vacancies in existing properties.
s.m. (thousands)
0
0% 2020
2021
Net absorption
2022
2023
New supply
2024 YTD 2025
Vacancy rate
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