Figures

Japan Logistics MarketView Q4 2024

January 31, 2025 10 Minute Read

Looking for a PDF of this content?

Download

Steady pre-leasing in Greater Osaka with vacancy rate at 3.7%;
Greater Tokyo net absorption exceeds 500,000 tsubo in 2024

  • The vacancy rate for Large Multi-Tenant (LMT) logistics facilities in the Greater Tokyo fell by 0.3 pp. q-o-q to 9.8% in Q4 2024, the first decline since Q2 2022. In addition to one of the three new facilities completed this quarter entering operation at full capacity, vacancies in existing facilities were filled. Net absorption for 2024 cleared 500,000 tsubo for the second straight year, while effective rents were unchanged q-o-q at JPY 4,500 per tsubo per month.
  • The LMT vacancy rate in the Greater Osaka fell by 0.3 pp. q-o-q to 3.7%. Although new supply for 2025 is projected to hit a record of 410,000 tsubo, pre-leasing in facilities under construction is proceeding well, with 70% of the space already leased. Effective rents increased by 0.2% q-o-q to JPY 4,210 per tsubo per month, driven primarily by high-quality properties in central locations.
  • The LMT vacancy rate in the Greater Nagoya dropped by 0.4 pp. q-o-q to 13.4%. Supply for 2025 is projected to be the second largest in history and should attract demand from both the manufacturing and consumer goods-related sectors due to its even spread throughout Aichi Prefecture. Effective rents rose by 0.3% q-o-q to JPY 3,670 per tsubo per month.
  • The LMT vacancy rate in the Greater Fukuoka fell 0.3 pp. q-o-q to 5.1% as net absorption for the calendar year reached an all-time high of 97,000 tsubo. Properties scheduled for completion in Q1 2025 also attracted strong tenant interest. Effective rents rose by 1.1% q-o-q to JPY 3,540 per tsubo per month.