Completion of large-size properties pushes Greater Tokyo vacancy rate above 2%

 

In Q3 2021 the vacancy rate for Large Multi-Tenant (LMT) logistics facilities in the Greater Tokyo area rose by 1.1 points q-o-q to 2.6%. Although vacancy rates rose due to the completion of large-scale facilities, there was also a high level of net absorption. Effective rents for the Greater Tokyo area remained unchanged q-o-q at JPY 4,470 per tsubo. By area, effective rent rose 0.4% for the Gaikando area and by 0.2% for the Route 16 area.

The LMT vacancy rate in the Greater Osaka area fell by 0.1 points q-o-q to 1.6%. Net absorption exceeded 90,000 tsubo, around 25,000 tsubo more than the previous quarter. Effective rents rose by 1.2% q-o-q to JPY 4,100 per tsubo. The rent hikes were seen in areas where future supply is limited.

The LMT vacancy rate in the Greater Nagoya area rose by 1.4 points q-o-q to 7.9% in Q3 2021. Although the vacancy rate appears volatile, overall demand continues to strengthen. Effective rents remained unchanged q-o-q at JPY 3,590 per tsubo.

The LMT vacancy rate in the Greater Fukuoka area remained at 0.0%, maintaining the level it has held since Q2 2019. Developer activity is extremely robust, with multiple plans for 2023 and beyond beginning to move forward. Effective rents rose 0.9% q-o-q to JPY 3,230 per tsubo.