Office vacancy rates in August 2014 – Miki Shoji

Left: Nippon Life Marunouchi Garden Tower; Center: Nihonbashi Diamond Building; Right: Oase Shibaura MJ Building

According to Miki Shoji’s office report, the office vacancy rate in Tokyo’s five central business districts (Chiyoda, Chuo, Minato, Shinjuku and Shibuya) was 6.08% in August, down 0.18 points from the previous month and down 2.14 points from last year.

The vacancy rate in brand new office buildings was 18.17%, up 0.76 points from the previous month and up 0.24 points from last year.

The following office buildings were completed in August:

  • Nippon Life Marunouchi Garden Tower, Chiyoda-ku: 22 floors, 55,770 sqm floor space.
  • Nihonbashi Diamond Building, Chuo-ku: 18 floors, 29,700 sqm floor space.
  • Oase Shibaura MJ Building, Minato-ku: 7 floors, 12,870 sqm floor space.
  • Nihonbashi Nichigin-Dori Building, Chuo-ku: 8 floors, 10,140 sqm floor space.

Vacancy rates by area:

  • Chiyoda-ku: 5.84% (+0.06 points from the previous month; -0.6 points from August 2013)
  • Chuo-ku: 6.28% (-0.11 points; -1.92 points)
  • Minato-ku: 6.80% (-0.34 points; -2.93 points)
  • Shinjuku-ku: 5.52% (-0.47 points; -4.25 points)
  • Shibuya-ku: 4.01% (-0.08 points; -1.80 points)

Nationwide vacancy rates:

  • Tokyo: 6.02% (-0.18 points from the previous month; -2.14 points from August 2013)
  • Osaka: 8.36% (-0.36 points; -1.94 points)
  • Nagoya: 8.16% (-0.21 points; -1.83 points)
  • Sapporo: 8.20% (-0.40 points; -1.11 points)
  • Sendai: 10.97% (-0.34 points; -1.85 points)
  • Yokohama: 9.05% (-0.16 points; -0.03 points)
  • Fukuoka: 8.43% (-0.12 points; -2.86 points)

Average office rent

The average monthly office rent in Tokyo’s five business districts was 16,729 Yen per Tsubo* (5,069 Yen/sqm) in August, up 66 Yen from the previous month and up 461 Yen from last year. This is the 8th month in a row to see a month-on-month increase in rent.

The average monthly rent in brand new office buildings was 26,590 Yen per Tsubo (8,057 Yen/sqm), down 591 Yen from the previous month but up 1,012 Yen from last year.

Average monthly office rent by area:

  • Chiyoda-ku: 18,235 Yen/Tsubo (+36 Yen from the previous month; +601 Yen from August 2013)
  • Chuo-ku: 16,065 Yen/Tsubo (+134 Yen; +786 Yen)
  • Minato-ku: 17,147 Yen/Tsubo (+39 Yen; +331 Yen)
  • Shinjuku-ku: 14,185 Yen/Tsubo (+142 Yen; +427 Yen)
  • Shibuya-ku: 17,508 Yen/Tsubo (0 Yen; +487 Yen)

Average monthly office rent across Japan:

  • Tokyo: 16,729 Yen/Tsubo (+66 Yen from the previous month; +461 Yen from August 2013)
  • Osaka: 11,116 Yen/Tsubo (-12 Yen; -137 Yen)
  • Nagoya: 10,782 Yen/Tsubo (-13 Yen; -57 Yen)
  • Sapporo: 8,179 Yen/Tsubo (-8 Yen; -19 Yen)
  • Sendai: 9,106 Yen/Tsubo (+7 Yen; -4 Yen)
  • Yokohama: 10,493 Yen/Tsubo (-2 Yen; -53 Yen)
  • Fukuoka: 9,222 Yen/Tsubo (+9 Yen; -32 Yen)

*1 Tsubo = approximately 3.3 sqm or 35 sqft.

Source: Miki Shoji Office Report, September 2014.