Greater Osaka’s Logistics Market Boom

The Large Multi-Tenant (LMT) logistics facility market in Greater Osaka is thriving. Since 2019, the annual vacancy rate has remained consistently below 5%, with the sole exception of 2023, when it stood at 6.0%. When analyzed on a quarterly basis, the vacancy rate has exceeded 5% on just three occasions between Q1 2020 and Q4 2025, underscoring the stable demand seen across the region.

Demand for LMT facilities was particularly strong in 2025. Despite the addition of a record high 401,000 tsubo of new floor space, the vacancy rate rose by a mere 0.5 pp. y-o-y to 4.2%. Net absorption for the year reached 375,000 tsubo, a figure some 25% above the previous all-time high of 299,000 tsubo recorded in 2021. CBRE’s latest projections show that new supply for each of 2026 and 2027 should only reach around 40% of 2025’s numbers, while demand should remain strong, forcing the vacancy rate down below the 4% threshold.

Key factors contributing to consistently strong demand for logistics space in Greater Osaka include the revitalization of the regional economy on the back of robust inbound tourist spending and the reshoring of manufacturing plants, as well as its geographical advantages as a hub that can cover western Japan. With demand for improved efficiency in transportation and distribution networks set to strengthen further, effective rents for LMT facilities in Greater Osaka are projected to continue to rise.