Osaka office rental market expected to accelerate in the near term

Workplaces are now used as a strategy to attract talent.

According to the June Oxford Economics forecast cited by JLL in a report, Osaka City’s real GDP is projected to grow by 0.4% in 2025 but remain flat in 2026. The rental market may accelerate as companies view workplaces as a strategy to attract talent rather than as cost centres, with low vacancies in existing buildings.

Additionally, the JLL report noted there will be one more project that contributes to new supply in 2025. “Investment market volume is likely to decrease despite strong buyer demand due to limited selling activity. In Q2 2025, there have been several CRE (corporate real estate) sales by companies, and there are expectations for further expansion in the future,” the report added.

Here’s more from JLL:

The July Tankan Survey for Greater Osaka showed that business sentiment rose to 14 points from 10 for large manufacturers and rose to 33 points from 30 for large non-manufacturers.
Net absorption totalled +28,000 sqm in Q2 2025. Demand for office facility improvement remains high due to business acceleration, as well as the continuing return-to-office trend.

In the quarter there were several consulting service providers that moved for expansion.
“Yodoyabashi Station One” was completed, and the vacancy rate rose only 0.2% from the previous quarter to 3.3%

One new building (Yodoyabashi Station One), by Chuo Nittochi and Keihan Holdings, completed in the quarter, with a GFA of 73,000 sqm and 31 storeys. Bank/financial companies and law firms relocated to this building.

The Q2 2025 vacancy rate rose to 3.3%, an increase of 20 bps q-o-q and a decrease of 80 bps y-o-y.

High rent contracts are supporting a trend toward raising rent levels further

The average monthly gross rent per tsubo was JPY 24,623, an increase of 3.5% q-o-q and 8.5% y-o-y. Buildings completed in 2024 in the Umeda area have achieved high rent increases, pushing up asking rents for Osaka market.

Capital values increased by 4.4% q-o-q and 11.8% y-o-y in Q2 2025, driven by current rent trends. Cap rates remained stable from the previous quarter.