Osaka Grade A office rents to rise 10% this year

And vacancy is expected to fall to 2% by year-end.

Osaka's Grade A office market started 2026 strongly, with net absorption reaching 7,000 tsubo in the first quarter as relocation demand expanded beyond large corporations to include mid-sized and smaller companies, according to JLL.

The property services firm said leasing activity was spread across a broad range of industries, including manufacturing, wholesale and IT. With no new supply delivered during the quarter, vacancy tightened to 2.2%, down 0.9 percentage points both quarter-on-quarter and year-on-year.

Average gross rents climbed to JPY27,104 per tsubo per month, increasing 3.0% over the quarter and 13.9% year-on-year. JLL said this was the first time annual rental growth had exceeded 13% since its records began in 2003. Capital values also rose 2.9% quarter-on-quarter and 14.6% year-on-year.

Looking ahead, JLL forecasts vacancy will decline further to 2.0% by the end of 2026 as future supply remains extremely limited. The only major building scheduled for completion in July is expected to be fully leased shortly after opening, supporting continued rental growth. “With available floor space becoming limited, the upward trend in rents is continuing, and the annual rental growth rate for 2026 is projected to be around 10%,” JLL said.