Office vacancy rates in October

According to Miki Shoji’s Office Report, the vacancy rate in Tokyo’s 5 central business districts (Chiyoda, Chuo, Minato, Shinjuku and Shibuya) was 7.56% in October, down 0.34 points from the previous month and down 1.18 points from last year.

This is the lowest level seen in over 4 years. 

The vacancy rate in new buildings was 17.04%, down 1.08 points from September and down 12.12 points from last year. The following three commercial buildings were competed in October:

  • Yomiuri Shimbun Building / Otemachi / 33 Floors / 89,252 sqm
  • Nittochi Toranomon Building / Toranomon / 11 Floors / 11,487 sqm
  • TS Aoyama Building / Minamiaoyama / 6 Floors / 3,887 sqm
Tokyo Office Buildings October 2013
Yomiuri Shimbun Building (left); Nittochi Toranomon Building (center); TS Aoyama Building (right).

Past vacancy rates:

  • 2013/10: 7.56%
  • 2013/09: 7.90%
  • 2013/08: 8.16%
  • 2013/07: 8.29%
  • 2013/06: 8.46%
  • 2013/05: 8.33%

Vacancy rates by area:

  • Chiyoda-ku: 6.12% (-0.11 point from the previous month)
  • Chuo-ku: 7.63% (-0.59 points)
  • Minato-ku: 8.80% (-0.47 points)
  • Shinjuku-ku: 8.96% (-0.39 points)
  • Shibuya-ku: 5.75% (+0.11 points)

Nationwide vacancy rates:

  • Tokyo: 7.56%
  • Osaka: 9.88% (-0.09 points from the previous month)
  • Nagoya: 10.07% (+0.07 points)
  • Sapporo: 8.92% (-0.07 points)
  • Sendai: 12.38% (-0.19 points)
  • Yokohama: 8.76% (-0.05 points)
  • Fukuoka: 10.97% (-0.16 points)

Average office rent:

The average monthly office rent in Tokyo’s five business districts was 16,237 Yen per Tsubo* (4,920 Yen/sqm) in October, up 0.04% (7 Yen) from the previous month but down 2.35% (391 Yen) from last year. This is the first time in 16 months where the rent has increased from the previous month.

The average monthly rent in new office buildings was 26,500 Yen per Tsubo (8,030 Yen/sqm) in October. This is an increase of 3.60% (922 Yen) from last month and an increase of 13.66% (3,185 Yen) from last year.

Average monthly office rent by area:

  • Chiyoda-ku: 17,709 Yen/Tsubo (+91 Yen from the previous month; -223 Yen from last year)
  • Chuo-ku: 15,238 Yen/Tsubo (-20 Yen; -647 Yen)
  • Minato-ku: 16,799 Yen/Tsubo (+31 Yen; -374 Yen)
  • Shinjuku-ku: 13,653 Yen/Tsubo (-70 Yen; -455 Yen)
  • Shibuya-ku:  17,050 Yen/Tsubo (+50 Yen; +10 Yen)

Average monthly office rent across Japan:

  • Tokyo: 16,237 Yen/Tsubo
  • Osaka: 11,277 Yen/Tsubo (+20 Yen from the previous month; -68 Yen from last year)
  • Nagoya: 10,829 Yen/Tsubo (-4 Yen; -66 Yen)
  • Sapporo: 8,178 Yen/Tsubo (-10 Yen; -40 Yen)
  • Sendai: 9,098 Yen/Tsubo (-3 Yen; -25 Yen)
  • Yokohama: 10,567 Yen/Tsubo (+3 Yen; +17 Yen)
  • Fukuoka: 9,257 Yen/Tsubo (-1 Yen; -128 Yen)

*1 Tsubo = approximately 3.3 sqm or 35 sqft.

Source: Miki Shoji Office Report, November 2013 (PDF)

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