Osaka to see 40,000 tsubo of new office supply by 2025

A majority will be in the vicinity of Yodoyabashi station.

The limited supply introduced to the Osaka office market in 2023 allowed some further breathing room to absorb existing vacant space. That said, Savills analysts said fluctuations are likely to occur. This year’s supply will be the largest in over three decades in Osaka. 

Here’s more from Savills:

The Umeda submarket, where a majority of this new supply will be concentrated, may be of particular concern. That said, large mixed-use schemes such as GRAND GREEN OSAKA will lead the large-scale improvements of their respective surrounding areas, providing modern and diverse amenities to tenants, and generating new demand in the process. 

Looking ahead to 2025, the Osaka market will welcome nearly 40,000 tsubo of NRA, with a large proportion concentrated within close vicinity of convenient Yodoyabashi station. The Yodoyabashi East project appears to be almost half pre-leased, marking an auspicious start. 

All in all, most office submarkets in Osaka continue to improve, with noticeable progress made in the Shin-Osaka submarket in particular. Indeed, recent strong corporate performance should support office demand moving forward. While temporal fluctuations are likely over the coming year, the longer-term outlook for the Osaka office market appears to be brighter.