Large-scale redevelopment in Umeda delivered approximately 210,000 sqm of Grade A office supply in 2024 alone, representing a 1.3-fold increase compared to existing 2023 stock. Osaka's Grade A office monthly rent reached JPY 24,623 per tsubo in Q2 2025, showing an 8.5% year-on-year increase that surpassed Tokyo's 5.9% growth rate.

Previously, Osaka’s peak office rent reached JPY 23,574 per tsubo before the 2008 Global Financial Crisis (GFC), then fell to 70% of peak levels by 2010. However, office rents rose consecutively for 22 quarters from Q3 2014, recovering to pre-GFC levels by end-2019. The prolonged pandemic kept rents below these levels from 2022 onwards, but rents finally reached JPY 23,799 in Q1 2025, as high-quality new supply in 2024 combined with robust office demand. Looking ahead, limited new supply until 2030 means that tight supply-demand conditions and rental growth will likely persist.

Figure 1: Osaka CBD Grade A office rents and vacancy rate 

The Osaka office market is expected to experience sustainable growth in the long term due to the following factors:

1. Increasing employment: Osaka Prefecture added 200,000 workers compared to three years ago (Q2 2025). Kansai's economic revitalisation and expanding business demand will continue supporting office demand.

Figure 2: Numbers of employees in Osaka