Figures

Japan Logistics MarketView Q3 2024

October 31, 2024 10 Minute Read

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Greater Tokyo vacancy rate rises to 10.1%
while net absorption maintains recent average

  • The vacancy rate for Large Multi-Tenant (LMT) logistics facilities in Greater Tokyo climbed by 0.4 pp. q-o-q to reach 10.1% in Q3 2024. The increase was due to the quarter’s new supply of 183,000 tsubo coming on stream at around 50% occupancy, and the lengthy amount of time it is taking to fill vacancies in relatively new existing properties. Overall demand remains solid, however, with net absorption for the quarter reaching 136,000 tsubo, maintaining the quarterly average registered over the past five years. Effective rents increased by 0.2% q-o-q to JPY 4,500 per tsubo. Even within the same area, significant divergence in tenant interest became evident over the quarter, leading to large disparities in rent levels.

  • The LMT vacancy rate in Greater Osaka stood at 4.0%, up 0.3 pp. from the previous quarter. Net absorption for the period reached 91,000 tsubo, just below the all-time single-quarter record of 94,000 set in Q2 2020. Effective rents increased by 1.0% q-o-q to JPY 4,200 per tsubo, with rents in properties in prime locations and those with desirable specifications and few vacancies continuing to rise steadily

  • The LMT vacancy rate in Greater Nagoya dropped by 0.9 pp. q-o-q to 13.7%. With no new supply available this quarter, significant vacancies were filled in existing properties. Effective rents rose by 0.5% q-o-q to JPY 3,660 per tsubo as rent levels rose for properties in prime locations.

  • The LMT vacancy rate in Greater Fukuoka spiked by 2.2 pp. q-o-q to 5.4%, largely due to the one new property completed this quarter commencing operations at less than full occupancy. Effective rents rose by 0.3% q-o-q to JPY 3,500 per tsubo.