Tokyo office vacancy reaches lowest level in 29 years

The office vacancy rate across Tokyo’s central five business districts dropped to 1.64% in May, down 1.04 points from last year and the lowest level seen since December 1990 when the rate was 0.39%. 

Osaka’s business district had a vacancy rate of 2.45%, while Nagoya had a rate of 2.11%. Fukuoka’s vacancy rate was 1.81%. 

According to Miki Shoji, the average monthly office rent in central Tokyo was 21,396 Yen per Tsubo (approx. 6,473 Yen/sqm), up 6.9% from last year. This is the 61st month in a row to see a year-on-year increase in rent.

Potential reasons for the shrinking vacancy rate may be due to the rise in the number of co-working spaces that have popped up around the city, along with demand from major corporate tenants seeking larger and more appealing offices in order to attract and retain employees.

Kyodo News, June 12, 2019.
Miki Shoji Office Market Data, May 2019.

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