Tokyo logistics demand outpaces supply for the first time in five years

Vacancy declined to 8.3% in 2025.

Logistics demand in Greater Tokyo has outpaced new supply for the first time since 2020, driving vacancy rates lower and signalling improving market conditions, according to Savills.

Savills reports that vacancy declined to 8.3%, down 1.3 percentage points half-on-half and 0.7 percentage points year-on-year, as robust demand absorbed a significant volume of recently completed space. Well-located facilities close to the city and major transport links continue to outperform, while more remote assets face ongoing leasing challenges.

Despite strengthening fundamentals, Savills notes that average asking rents in Greater Tokyo softened, falling 2.6% half-on-half and 4.3% year-on-year to JPY4,500 per tsubo, as premium-priced new supply is gradually absorbed. Rents for existing assets, however, have remained broadly stable.

In contrast, the Greater Osaka market continues to tighten. Savills highlights that average asking rents rose 0.7% half-on-half and 7.4% year-on-year to JPY4,620 per tsubo, surpassing Tokyo levels. Vacancy remains low at 3.7%, with strong demand keeping pace despite a record 1.8 million square metres of new supply in 2025.

Savills expects that with supply set to moderate, both markets will see improved balance, with sustained demand supporting further absorption—particularly in Greater Tokyo as vacancy continues to trend downward.