Effective Rents Continue to Rise But Tenants Turn More Selective


The vacancy rate for Large Multi-Tenant (LMT) logistics facilities in the Greater Tokyo area rose for the second consecutive quarter, up 0.4 points q-o-q to reach 1.5% in Q2 2021. The majority of the take up was by the logistics companies. Several leasing deals involved single tenants snapping up entire properties to handle expansions or to establish new bases of operation. Effective rents for the Greater Tokyo area rose by 0.2% q-o-q to JPY 4,470 per tsubo. However, properties whose rents are seen to be high relative to their location or specifications may find it difficult to secure new tenants.

The LMT vacancy rate in the Greater Osaka area fell by 0.2 points q-o-q to 1.7%, the lowest since Q1 2015. Effective rents rose by 0.7% q-o-q to JPY 4,050 per tsubo.

The LMT vacancy rate in the Greater Nagoya area fell by 2.1 points q-o-q to 6.5%. Although tenant activity is recovering, effective rents remained flat at JPY 3,590 per tsubo.

The LMT vacancy rate in the Greater Fukuoka area remained at 0.0% once again in Q2 2021, maintaining a level it has held since Q2 2019. Strong demand led to an increase in effective rents, which rose 0.9% q-o-q to JPY 3,200 per tsubo.