The vacancy rate for LMT properties in the Greater Tokyo Area stood at 2.4% in Q3 2019, marking the lowest level since CBRE’s surveys began in Q1 2004. New supply totalled 206,000 tsubo while net absorption was 211,000 tsubo, in both cases the highest ever quarterly figures. Effective rents rose by 0.7% q-o-q to JPY 4,230 per tsubo in the Greater Tokyo Area.
The vacancy rate in the Greater Osaka Area LMT market fell by 1.5 points q-o-q to 5.6%, marking the first time that the vacancy rate in this area has fallen below 6% since the 1.9% recorded in Q2 2016. There are now just three properties in the overall Greater Osaka Area with large-scale vacant space remaining. Effective rents stood at JPY 3,700 per tsubo, a rise of 1.1% q-o-q.
In the Greater Nagoya Area LMT market, the vacancy rate fell by 5.2 points q-o-q to 12.1%. Only one property is slated for development over the next year, meaning that the vacancy rate is expected to fall further. Effective rents rose by 0.3% q-o-q to JPY 3,560 per tsubo.