Nagoya investment-grade office vacancy tightens to 5.7% in H1 2024

Thanks to strong interest from tenants.

According to a Savills report, investment-grade office vacancy in Nagoya tightened considerably by 2.2ppts HoH to 5.7% in 1H/2024. 

The Nagoya Shimizu Fukoku Seimei Building and the 2nd NAGOYA SANCO BUILDING, both completed in the first half of 2024, received strong interest from tenants, and appear to be largely occupied after arriving to the market. 

Here’s more from Savills:

In particular, favourable market conditions have spurred increased demand for modern office space, and many companies appear to be carrying out long overdue office relocation and consolidation activity. With new large offices being effectively filled, Hirokoji Cross Tower appears to have also secured some tenants. 

All-grade market vacancy remained flat over the past half-year at 5.7% in 1H/2024. Marunouchi’s vacancy loosened by 2.1ppts HoH to 7.4%. Despite strong leasing activity observed for the newly completed Nagoya Shimizu Fukoku Seimei Building, its substantial addition of 8,600 tsubo of NRA temporarily contributed to the overall uptick in vacancy in the submarket. On the other hand, Meieki and Fushimi saw vacancies tighten by 0.6ppts HoH and 0.2ppts HoH to 5.6% and 6.3%, respectively.