The average vacancy rate for prime office space in Tokyo’s central five business districts hit a new low in November, dropping 0.07 points from the previous month to 1.56%. This is the lowest vacancy rate seen since December 1990 when the average rate was just 0.39%. Meanwhile, average rents have increased for the past 71 consecutive months.
Chiyoda Ward, which includes the Marunouchi and Otemachi districts, took the title for having the lowest vacancy rate in the five wards, reaching 1.17% in November. Shibuya’s vacancy rate has doubled over the past 12 months to 2.02%.
The average monthly rent across central Tokyo was 22,066 Yen per Tsubo (approx. 6,677 Yen/sqm), up 6.4% from last year. In Shibuya, the average rent increased by 11.9% over the past 12 months to 24,942 Yen per Tsubo (approx. 7,547 Yen/sqm).
In November, the 230-meter tall Shibuya Scramble Square building was completed above Shibuya Station. The 47-story office and retail building has a total floor area of 181,000 sqm (approx. 1.95 million sq.ft). The office floors are fully leased, with main tenants including mixi, CyberAgent, and Softbank. Low vacancy rates are expected to continue as corporate tenants continue to seek newer and larger office space.
Source: Miki Shoji, December 12, 2019.
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