Tokyo office vacancy rate increases for first time in 9 months

In March, the office vacancy rate across Tokyo’s central five business districts increased for the first time in 9 months. The vacancy rate reported by Miki Shoji was 1.50%, up 0.01 points from the previous month, but down 0.28 points from last year. 

Chuo and Minato wards saw vacancy rates drop. Chuo ward had a vacancy rate of 1.14% in March, down 0.01 points from the previous month and down 1.12 points from last year.

The average monthly office rent for prime office space in Tokyo was 22,594 Yen per Tsubo (6,836 Yen per square meter), up 0.2% from the previous month and up 6.9% from last year. This is the 75th month in a row to record an increase. 

At this stage it is still too early to see any effects from the coronavirus fallout, although the worsening economic outlook could see companies put a hold on office relocations or expansions. This could lead to a further increase in vacant floorspace. 

Nationwide office vacancy rates in March (prime office space in central business districts):

  • Tokyo: 1.50% (+0.01)
  • Yokohama: 2.09% (+0.12)
  • Osaka: 2.00% (+0.06)
  • Nagoya: 2.27% (+0.06)
  • Sendai: 4.60% (+0.18)
  • Sapporo: 1.58% (-0.04)
  • Fukuoka: 2.20% (-0.09)

Sources:
Miki Shoji, April 9, 2020.
Kyodo, April 9, 2020.

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