Osaka office rents surge 14.1% in Q2
Severe space scarcity strengthens landlords’ pricing power and may support capital values, but widening budget gaps could reduce tenant inquiries and encourage flexible-workspace alternatives.
Osaka Grade A office rents reached JPY 28,083 per tsubo monthly in Q2 2026, rising 14.1% year-on-year as vacancy fell to 1.8%.
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Meanwhile, the vacancy rate declined to 1.8% during the quarter.
Osaka's office market continued to tighten in the second quarter of 2026, with net absorption reaching 3,600 tsubo as demand from new office setups, expansions and relocations encountered increasingly limited Grade A availability, according to JLL.
The shortage of suitable space is prompting occupiers to consider alternatives, including remaining in existing offices, renovating current premises or using flexible workspace, JLL said.
The vacancy rate fell to 1.8% in Q2, down 0.4 percentage point quarter-on-quarter and 1.5 percentage points year-on-year. No new office supply was delivered during the quarter, while the absorption of vacant space at Yodoyabashi Gate Tower and Grand Front Osaka Tower B contributed to the decline.
JLL said there are virtually no vacant Grade A offices matching current relocation requirements. The pricing dynamic has also shifted, with premium rents increasingly being commanded by larger spaces of more than 500 tsubo, reversing the traditional pattern in which smaller offices attracted higher rents per tsubo.
Average monthly rents reached JPY 28,083 per tsubo in Q2, up 3.6% quarter-on-quarter and 14.1% year-on-year. JLL said landlords continue to hold the upper hand, with some owners choosing to wait for higher rents rather than rushing to lease available space.
However, the sharp rental increases are creating a growing gap between tenant budgets and landlord expectations. JLL noted that some buildings have actually seen inquiries decline after raising asking rents.
Capital values increased 5.6% quarter-on-quarter and 16% year-on-year, driven by the rise in rents.
The outlook remains tight, with JLL identifying only one major new supply project through 2030: Taisei Midosuji Tower in Chuo-ku, with a total floor area of approximately 14,000 tsubo and scheduled for completion in July 2026.
JLL expects Grade A office space to remain genuinely scarce as available floors become increasingly limited. Rental growth for 2026 is forecast at around 12% annually, pointing to continued upward pressure on rents in Osaka's office market.