New logistics supply in Greater Osaka to hit a record 1.7m sqm this year | Real Estate Asia
, Japan

New logistics supply in Greater Osaka to hit a record 1.7m sqm this year

Nearly 900,000sqm will be completed in H1 2025.

In Greater Osaka, nearly one million sq m of new GFA entered the logistics market in 2024, echoing 2023 levels.

According to Savills, the largest completion in the second half of 2024 was the GLP ALFALINK Ibaraki 1. The 165,000 sq m facility, situated between Osaka and Kyoto, offers convenient access to the Kansai and Chugoku regions via the Meishin and Kinki Expressways.

Here’s more from Savills:

Additionally, its proximity to residential areas makes it appealing to potential tenants seeking to attract and retain their workforce, particularly in an industry plagued by labour shortages. New developments in Greater Osaka appear to have been relatively well received, with some facilities reportedly achieving full occupancy upon completion, showing the firm demand for premium modern logistics facilities in Greater Osaka.

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Looking ahead, 2025 will see a record 1.7 million sq m in GFA of new logistics supply in Greater Osaka, with nearly 900,000 sq m completed in the first half of 2025. The most notable upcoming completions in the first half of 2025 will be Kawanishi Distribution Centre 1 and 2, with a combined GFA of 240,000 sq m. Located near Osaka International Airport and 30 minutes from Osaka City centre, they will be connected to the Shin-Meishin Expressway, offering convenient access to Kyoto, Kobe, and other regions in Western Japan.

While the large incoming new supply may cause some temporal disruption and contribute to rising vacancies, demand for modern logistics space remains strong, exemplified by the sound absorption in the previous years, which should stabilise the Greater Osaka market over the coming year.

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