Nagoya new office supply to reach 6,000 tsubo in H2 2025

Analysts expect smooth absorption as new supply remains limited.

New office supply in Nagoya in 2025 will be subdued according to data from a Savills report, with close to 6,000 tsubo forecast, mostly contributed by Nagoya Fushimi K Frontier in the second half of 2025.

“The limited new supply in 2025 should suggest smooth absorption moving forward, following four consecutive preceding years of supply exceeding 10,000 tsubo.”

Here’s more from Savills:

Looking ahead to 2026, nearly 35,000 tsubo of new supply is expected to come to market, primarily in the Sakae area. That said, most of the major new supply is enjoying strong pre-leasing. Furthermore, strong office demand and limited relocation options should ensure uneventful absorption. In addition, many relocations are driven by companies moving from owner-occupied facilities or redevelopment projects, maintaining market stability and increasing the amount of net leasable floor space available.

Vacancy

Investment-grade office vacancy in Nagoya tightened significantly by 2.5ppts HoH to 2.4% in 1H/2025. No new investment-grade additions were introduced in the past year while the latest additions in 2024 are almost fully leased. Combined with strong demand, vacancies have tightened considerably.

Given the limited availability of investment-grade offices, market conditions are expected to continue improving. There will be substantial new supply scheduled for 2026, much of which is already pre-leased at a high rental level.

The average all-grade market vacancy in Nagoya continues to tighten by 0.8ppts HoH to 4.2%. Marunouchi submarket, which faced elevated vacancies last year, saw the most significant improvement, with vacancy tightening by 2.8ppts HoH to 4.5%. All other submarkets saw moderate vacancy tightening.

Rent

Investment-grade office rents in Nagoya continue to increase by 1.4% HoH to JPY21,000 per tsubo. With shrinking vacancies across investment-grade office spaces, several properties have increased their rents over the past half year, even those with noticeable vacancies, in anticipation of future tenant demand amid decreasing availability.

Nagoya continues to see all-grade rental uplift across all submarkets, with rents increasing by 0.7% HoH to JPY12,600 per tsubo in 1H/2025. Sakae rents climbed by 1.3% HoH to JPY11,300 per tsubo while Fushimi experienced the most modest increase at 0.2% HoH. All other submarkets saw moderate rental growth in between.