- In Greater Tokyo, vacancy declined for the first time since 2020, improving by 0.7 percentage points (ppts) year-on-year (YoY) to 8.3%.
- In Greater Osaka, vacancy experienced a slight uptick of 0.2ppts YoY to 3.7%, despite a sizeable volume of new supply coming to market.
- Rents in Greater Tokyo declined by 2.6% half-year-on-half-year (HoH) and 4.3% YoY to JPY4,500 per tsubo.
- Rents in Greater Osaka increased by 0.7% HoH and 7.4% YoY to JPY4,620 per tsubo, surpassing Greater Tokyo levels.
- Investment levels in the industrial sector in 2025 remain on par with the record levels seen in 2024, reaching almost JPY1.3 trillion.
- Nationwide new supply in 2026 is forecast to decline by approximately 20% YoY. Greater Tokyo is expected to see similar levels to 2025, while Greater Osaka is expected to witness reduced new supply.
Demand set to outstrip new supply
The logistics sector remains resilient, supported by robust demand. The declining development pipeline should tighten market conditions further. Investor sentiment remains strong, as reflected in elevated 2025 transaction volumes.
Savills Research & Consultancy