Office vacancy rates in July 2014 – Miki Shoji

Mercros Bldg Tamachi Front Bldg
Mercros Building (left) and Tamachi Front Building (right)

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 6.20% in July, down 0.25 points from the previous month and down 2.09 points from last year. This is the lowest level seen since March 2009 when vacancy rates were 6.05%.

The vacancy rate in brand new buildings was 17.41%, down 0.68 points from the previous month but up 4.69 points from last year.

The following office buildings were completed in July:

  • Mercros Building, Nihonbashi, Chuo-ku: 9 floors; 6,980 sqm floorspace.
  • Tamachi Front Building, Shiba, Minato-ku: 9 floors; 5,730 sqm floorspace.
  • PMO Shiba Koen, Minato-ku: 8 floors; 3,500 sqm floorspace.

Vacancy rates by area:

  • Chiyoda-ku: 5.78% (+0.26 points from the previous month; -0.81 points from July 2013)
  • Chuo-ku: 6.39% (+0.01 points; -1.94 points)
  • Minato-ku: 7.14% (-0.96 points; -2.40 points)
  • Shinjuku-ku: 5.99% (-0.35 points; -4.31 points)
  • Shibuya-ku: 4.09% (+0.06 points; -2.29 points)

Nationwide vacancy rates:

  • Osaka: 8.72% (-0.17 points; -1.93 points)
  • Nagoya: 8.37% (-0.09 points; -1.65 points)
  • Sapporo: 8.60% (+0.11 points; -0.68 points)
  • Sendai: 11.31% (-0.11 points; -1.69 points)
  • Yokohama: 9.21% (-0.16 points; +0.02 points)
  • Fukuoka: 8.55% (-0.15 points; -2.75 points)

Average office rent

The average monthly office rent in Tokyo’s five business districts was 16,663 Yen per Tsubo* (5,049 Yen/sqm) in July, up 56 Yen from the previous month and up 353 Yen from last year. This is the 7th month in a row to see a month-on-month increase in rent.

The average monthly rent in brand new office buildings was 27,181 Yen per Tsubo (8,237 Yen/sqm), down 182 Yen from the previous month but up 813 Yen from last year.

Average monthly office rent by area:

  • Chiyoda-ku: 18,199 Yen/Tsubo (+71 Yen from the previous month; +549 Yen from July 2013)
  • Chuo-ku: 15,931 Yen/Tsubo (+28 Yen; +513 Yen)
  • Minato-ku: 17,108 Yen/Tsubo (+34 Yen; +283 Yen)
  • Shinjuku-ku: 14,043 Yen/Tsubo (+110 Yen; +229 Yen)
  • Shibuya-ku: 17,508 Yen/Tsubo (+127 Yen; +466 Yen)

Average monthly office rent across Japan:

  • Tokyo: 16,663 Yen/Tsubo (+56 Yen; +353 Yen)
  • Osaka: 11,128 Yen/Tsubo (-30 Yen; -137 Yen)
  • Nagoya: 10,795 Yen/Tsubo (-1 Yen; -35 Yen)
  • Sapporo: 8,187 Yen/Tsubo (-2 Yen; -23 Yen)
  • Sendai: 9,099 Yen/Tsubo (-3 Yen; -27 Yen)
  • Yokohama: 10,495 Yen/Tsubo (+4 Yen; -44 Yen)
  • Fukuoka: 9,213 Yen/Tsubo (0 Yen; -55 Yen)

*1 Tsubo = approximately 3.3 sqm or 35 sqft.

Sources:
Miki Shoji Office Report, August 2014.
The Nikkei Shimbun, August 7, 2014.

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