Osaka grade A office vacancy expected to tighten to 2.8% by end-2026

No additional supply is expected through 2030.

Strong leasing activity is expected to drive Osaka’s Grade A office vacancy down to 2.8% by Q4 2026, supporting further rental growth amid tight supply conditions, according to a JLL report. With only one new Grade A building — the 45,000 sqm Honmachi 4-chome Project — scheduled for completion in July 2026 and no additional supply expected through 2030, market fundamentals remain highly supportive for landlords and investors.

The Osaka office market finished 2025 strongly, with net absorption bolstered by consolidation demand from group companies relocating branch and sales offices to prime locations along Umeda and Midosuji, according to JLL. Despite the completion of Yodoyabashi Gate Tower contributing to a temporary rise in vacancy to 3.1%, overall vacancy fell 1.3 percentage points year-on-year. Average rents reached JPY 26,313 per tsubo per month by the end of 2025, marking a 12.4% year-on-year increase and setting new records for two consecutive quarters.

On the investment side, the report said cap rates rose modestly to 2.95% amid higher long-term interest rates, while property pricing advanced 16% year-on-year. Notable transactions included Japan Prime Realty Investment Corporation acquiring co-ownership interests in Grand Front Osaka’s Umekita Plaza South and North buildings for JPY 9.2 billion and JPY 8.0 billion, reflecting continued investor confidence in the city’s office market.

JLL anticipates that constrained supply and ongoing strong leasing will keep vacancy low and rents on an upward trajectory, reinforcing Osaka’s position as a core Grade A office market in Japan.