- In Greater Tokyo, vacancy continues to increase, rising 0.6 percentage points (ppts) year-on-year (YoY) to 9.6%. The rate of increase appears to be slowing and given the consistent decrease in new supply since 2023, vacancy is expected to slowly stabilise towards the end of the year.
- In Greater Osaka, vacancy has risen by 0.4ppts YoY to 4.0%. New completions continue to see strong demand from tenants seeking new modern facilities.
- Rents in Greater Tokyo declined by 1.7% half-year-on-half-year (HoH) and 4.1% YoY to JPY4,620 per tsubo.
- Rents in Greater Osaka increased by 6.7% HoH and 9.8% YoY to JPY4,590 per tsubo, partly driven by new completions with elevated rents, and are almost reaching Greater Tokyo levels.
- Investment levels* in the industrial sector reached a record high in 2024 and are 11% higher than 2023, driven by a handful of big-ticket transactions. Due to limited opportunities in 1H/2025, transaction levels are 42% lower than those of 1H/2024. However, several large-scale transactions continue to be observed over the first half of the year.
- Nationwide new supply in 2025 is forecast to be on par with 2024. Greater Osaka will see record new supply, while Tokyo is expected to see a continued drop. Looking forward, new supply is expected to decrease further due to high construction and land costs.
- Overall, the logistics sector remains stable, with demand remaining firm. The growing adoption of technologies to enhance efficiency and streamlined operations points to improving sentiment further in the industrial sector.
*Data centers are excluded from all figures.