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.

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

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