Tokyo office vacancy rates reach 6 year low

According to Miki Shoji’s Office Report, the vacancy rate in Tokyo’s five central business districts (Chiyoda, Chuo, Minato, Shinjuku and Shibuya) was 5.31% in February, down 0.05 points from January and down 1.70 points from last year. This is the lowest level seen since January 2009 and is the 20th month in a row to see an improvement in vacancy rates.

The vacancy rate in brand new office buildings was 29.31%, up 14.46 points from the previous month and up 9.66 points from last year. A large-scale office building was completed in February, which added to the supply for the month. 

Vacancy rates in Tokyo:

  • Chiyoda-ku: 4.40% (-0.92 points from the previous month; -1.30 points from last year)
  • Chuo-ku: 5.42% (-0.04 points; -1.65 points)
  • Minato-ku: 6.81% (+0.82 points; -1.34 points)
  • Shinjuku-ku: 4.76% (-0.27 points; -3.50 points)
  • Shibuya-ku: 3.49% (-0.01 points; -1.88 points)

Nationwide vacancy rates:

  • Tokyo: 5.31% (-0.05 points; -1.70 points)
  • Osaka: 8.24% (+0.26 points; -1.21 points)
  • Nagoya: 7.36% (-0.08 points; -1.98 points)
  • Sapporo: 7.32% (-0.09 points; -1.22 points)
  • Sendai: 11.02% (-0.11 points; -1.04 points)
  • Yokohama: 8.05% (-0.04 points; -0.12 points)
  • Fukuoka: 7.69% (-0.04 points; -2.81 points)

AVERAGE OFFICE RENT

The average monthly office rent in Tokyo’s five business districts was 17,167 Yen per Tsubo* (5,202 Yen/sqm) in February, up 0.3% from the previous month and up 5.6% from last year. Rents have increased month-on-month for the past 14 months.

The average monthly rent in brand new office buildings was 26,192 Yen/Tsubo (7,947 Yen/sqm), down 3.9% from the previous month and down 5.3% from last year.

Average monthly office rent in Tokyo:

  • Chiyoda-ku: 18,540 Yen/Tsubo (+66 Yen from the previous month; +904 Yen from last year)
  • Chuo-ku: 16,267 Yen/Tsubo (-44 Yen; +736 Yen)
  • Minato-ku: 17,508 Yen/Tsubo (+7 Yen; +709 Yen)
  • Shinjuku-ku: 14,468 Yen/Tsubo (+12 Yen; +845 Yen)
  • Shibuya-ku: 18,624 Yen/Tsubo (+315 Yen; +1,503 Yen)

Average monthly office rent across Japan:

  • Tokyo: 17,167 Yen/Tsubo (+58 Yen; +917 Yen)
  • Osaka: 11,222 Yen/Tsubo (+85 Yen; -21 Yen)
  • Nagoya: 10,758 Yen/Tsubo (+7 Yen; -56 Yen)
  • Sapporo: 8,178 Yen/Tsubo (-6 Yen; +5 Yen)
  • Sendai: 9,082 Yen/Tsubo (-3 Yen; -23 Yen)
  • Yokohama: 10,423 Yen/Tsubo (-2 Yen; -116 Yen)
  • Fukuoka: 9,200 Yen/Tsubo (+3 Yen; -35 Yen)

*1 Tsubo = approximately 3.3 sqm or 35 sq ft.

Source: Miki Shoji, March 13, 2015.

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