Logistics Vacancy Rises to 5.8% in Greater Tokyo, Gap Between Areas Widens. Greater Osaka Records Historically High Net Absorption

​Tokyo, October 24, 2017 - CBRE today released its Q3 2017 logistics market data in Japan’s three major areas: Greater Tokyo, Greater Osaka, and Greater Nagoya.


  • Greater Tokyo Area LMT (Large Multi-Tenant Logistics Property) vacancy rose to 5.8%, although vacancy in properties more than one year old falls to 2.2%.
  • Net absorption in the Greater Tokyo amounted to 77,000 tsubo, far exceeding the 2013–2017 quarterly average. In the Tokyo Bay Area, occupancy in newly completed Distribution B Building exceeded 80%, amid solid leasing demand.
  • Vacancy rose to 8.1% in the Tokyo Bay Area, but fell sharply in the Gaikando Area from 5.0% last quarter to 1.9%. In the Route 16 Area, vacancy remained low at 2.1%, despite a slight increase in Q3 2017. In the Ken-O-do Area, vacancy rose again, reaching 19.4%.
  • In the Greater Osaka Area LMT market, net absorption reached 111,000 tsubo, setting a new record and surpassing 100,000 tsubo for the first time. Vacancy fell to 15.7%.

Greater Tokyo Area

The vacancy rate in the Greater Tokyo Area LMT market stood at 5.8% in Q3 2017, up 0.7 points q-o-q. The rise was mainly due to several new properties still having unlet space upon completion. However, space continued to be filled in properties which have been completed in previous quarters, and the vacancy rate for properties more than one year old fell from 2.7% in Q2 2017 to 2.2%. Net absorption for the quarter was 77,000 tsubo, far exceeding the 2013–2017 quarterly average. Occupancy in the newly completed Distribution B Building in the Tokyo Bay Area exceeded 80%, amid solid leasing demand. In the Gaikando Area, the vacancy rate fell sharply from 5.0% in Q2 2017 to 1.9%. Although the vacancy rate rose slightly in the Route 16 Area, it remained low at 2.1%. In the Ken-O-do Area, the vacancy rate rose to 19.4%, although the area has been seeing more enquiries from large tenants.

Wataru Sato, senior director of CBRE's Tokyo Industrial Services group, commented: “Space in Distribution B Building, which appeals to tenants due to its multi-purpose use and availability of small units, is being steadily filled. The Gaikando and Route 16 areas are also registering strong demand, and available space is limited. Consequently, properties due for completion in 2018–2019 are already attracting enquiries from a wide range of sectors.”

Greater Osaka Area

In the Greater Osaka Area LMT market, the vacancy rate fell 2.7 points q-o-q to 15.7%. The quarter saw the completion of two large-scale properties located in the inland area of Osaka Prefecture, both of which attracted significant demand. Also with several take-ups seen in properties along the waterfront area, net absorption this quarter rose above 100,000 tsubo since CBRE's surveys began in Q4 2006.

Kenji Kitamura, senior director of CBRE's Kansai Industrial Services group, commented: “The development of areas where there were previously no large-scale facilities is driving robust tenant demand. Although there are some properties in the waterfront area which have been carrying vacancy for some time, Greater Osaka LMT market as a whole is seeing a pick up in leasing activity.”

Greater Nagoya Area

In the Greater Nagoya Area LMT market, the vacancy rate fell from 18.0% in Q2 2017 to 14.2%. All the new supply planned for 2017 in Greater Nagoya, totaling 89,000 tsubo, have been completed during H1 2017, and therefore no new stock was added in Q3 2017, ensuring that leasing in these newly completed properties made steady progress.

Haruo Ishikawa, senior director of CBRE's Nagoya Industrial Services group, commented: “Drugstores, e-commerce firms and companies handling consumer goods such as household items and F&B continue to be active in establishing new distribution bases and/or relocating to larger spaces. The vacancy rate is likely to decline further in Q4 2017.”

For further details on market trends and forecasts, as well as market data by area, please refer to the Q3 2017 Japan Logistics MarketView, scheduled for release on October 31. The report will be published on the CBRE Japan website at:






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Press Release
Japan Logistics MarketView Q3 2017

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