Osaka investment-grade office vacancy rates dip to 4% in H1 2024

Meanwhile, all-grade vacancy rates declined to 4.8%.

In a report, Savills revealed that investment-grade vacancy rates in Japan loosened marginally by 0.2ppts HoH to 4.0% in 1H/2024. Though Osaka welcomed a few new office properties with large amounts of NRA, they experienced strong leasing activity, indicating firm tenant demand for new office spaces. 

Indeed, vacancy tightened among many submarkets, with the Shin-Osaka submarket tightening by a notable 3.5ppts HoH in particular. 

“Meanwhile, all-grade office vacancy rates loosened slightly by 0.3ppts HoH to 4.8%. The Shin-Osaka submarket saw the largest tightening of 1.9ppts HoH, while vacancies in the Shinsaibashi-Namba submarket tightened by 1.1ppts HoH to the lowest rate at 2.8%. Similarly, Minami-Mori saw a marginal decline in vacancy, though other submarkets experienced moderate loosening,” the report added.