Nagoya office rents inch up by 0.8% in H1 2024

Guess which submarket saw the largest rental growth.

In a report, Savills revealed that all-grade rents strengthened across all submarkets in Nagoya in 1H/2024, increasing by 0.8% HoH to JPY12,400 per tsubo. Marunouchi saw the largest uptick of 1.4% HoH, driven by the premium rents from some newly completed developments. 

“Similarly, rents in the most expensive submarket Meieki, climbed by 1.1% HoH to JPY15,500 per tsubo. Elsewhere, Fushimi and Sakae saw modest rental growth at 0.6% HoH and 0.1% HoH, respectively,” the report said.

Here’s more from Savills:

In 1H/2024, investment-grade office rents increased by 0.9% HoH to JPY20,600 per tsubo, translating to a yearly increment of 1.9%. This rental growth appears to have been driven largely by newly completed office developments, which command above-average rents, as well as by the rental increment observed among many office properties. 

Some new completions initially set lower rents, but strong market demand has led to upward rental revisions in the past half-year.