According to brokerage Miki Shoji, the average vacancy rate for office space across Tokyo’s five business districts of Chiyoda, Chuo, Minato, Shinjuku and Shibuya reached 6.47% in October, up 0.04 points from the previous month and up 2.54 points from last year. This is the 20th month in a row to see an increase.

Although the remote work situation is continuing, there has been a slowdown in the growth of vacant office space as new leases are signed.

The average vacancy rates in Chuo, Minato and Shibuya shrank slightly from September. Shibuya saw the vacancy rate drop by 0.86 points to 5.89%, the lowest level seen since April. 

Monthly rents, however, are down 54 Yen to 20,804 Yen per tsubo (6,295 Yen/sqm) across the five business districts. Over the past 12 months they have dropped by 7.3%.

A vacancy rate of 5% is said to indicate a healthy balance between supply and demand. When the vacancy rate exceeds 5%, rents tend to decline. 

Source: Miki Shoji, November 11, 2021.