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- Investment-grade office rents in Osaka grew by 8.4% HoH to JPY27,000 per tsubo per month, while vacancy tightened by 0.4 percentage points (ppts) HoH to 1.8%.
- Investment-grade office rents in Nagoya grew by 5.3% HoH to JPY22,900 per tsubo per month, while vacancy tightened by 0.6 ppts HoH to 0.7%.
- Investment-grade office rents in Fukuoka grew by 4.7% HoH to JPY21,700 per tsubo per month, while vacancy tightened by 0.8 ppts HoH to 2.8%.
- Over the past half-year, Grade A office cap rates remained flat across regional office markets except for Nagoya which tightened slightly.
- Overall investment volumes and office investment volumes as of Q1/2026 are roughly 17% lower than those of the same period in 2025.
- Osaka, Nagoya, and Fukuoka are forecasted to see limited to no new large-scale office supply in 2027, creating room for absorption of recent new supply.
Tight supply-demand conditions to sustain postive market momentum
New office supply delivered in 2025 across major regional markets was well absorbed, reflected by tightening vacancies. While several regional markets are expected to receive a notable influx of new supply in 2026, strong pre-leasing activity and firm tenant demand should facilitate its absorption.
Savills Research & Consultancy