This ViewPoint assesses the changes in the Greater Osaka market for large multi-tenant (LMT) logistics facilities and provides forecasts for vacancy rates and effective rent index.

  • The size of the economy in the Greater Osaka Area is 40-50% of that of the Greater Tokyo Area, but it has only 25% of the LMT space in the Greater Tokyo Area. The fact that LMT properties in the Greater Osaka Area represent between 2% and 3% of all the region's warehouses, less than half the figure of 5% in the Greater Tokyo Area, also suggests that the Greater Osaka Area has significant potential demand for LMTs.
  • Inland area accounts for a majority of the total new supply of 430,000 tsubo from 2016 to 2017. This will transform the market which had previously been confined to the waterfront areas, and likely to stimulate new demand.
  • The vacancy rate is forecast to rise from 3.4% in Q1 2015 to around 10% in H2 2016 and around 15% in H2 2017, the fact that supply will be concentrated in a relatively short period of two years makes it likely that there will still be vacant space that the market cannot immediately absorb.