HIGHLIGHTS
Tokyo Grade A vacancy rate fell 0.1 point q-o-q to 0.7%, the first increase in two quarters. Tokyo Grade A rents rose by 1.1% q-o-q to JPY 38,350 per tsubo. 
Osaka Grade A vacancy rate rose 0.1 point q-o-q to 0.3%. Osaka Grade A rents rose by 1.8% q-o-q to JPY 25,650 per tsubo.
Nagoya Grade A vacancy rate rose 0.1 point q-o-q to 0.1%. Nagoya Grade A rents rose by 1.5%
q-o-q to JPY 27,300 per tsubo.

RENTAL OUTLOOK
We forecast Tokyo Grade A rents to decline by 2.9% over the next year. Meanwhile, Osaka Grade A rents are forecast to rise by 4.3% over the next year, and Nagoya Grade A rents are expected to rise by 2.6% over the next year.