REIT sells Shinagawa office at loss as vacancy rate jumps to 50%

A J-REIT has sold a large office building in Shinagawa at a 12% loss to an unnamed buyer. The sale price of 61 billion Yen (approx. US$403 million) is 12% below book value and 8.5% below an October 2023 appraisal.Read more

Chiyoda office vacancy rate reaches 39-month low

In February, the office vacancy rate in the Chiyoda business district in Tokyo reached the lowest level in 39 months. According to office brokerage Miki Shoji, the vacancy rate dropped by 0.2 points from the previous month to 2.96%. This is 1.4 points lower than 12 months ago.Read more

Omotesando office building sells at 3% cap rate

A recently-built office building in Omotesando has been acquired by a J-REIT at an assumed cap rate of 3.0%. Japan Real Estate Investment Corporation (JRE) acquired a 77% ownership interest in the 13-story ‘3rd Minami Aoyama’ building from its sponsor Mitsubishi Estate for 21 billion Yen (approx. US$143 million) on March 8.Read more

Toranomon Hills Business Tower floor sells for 8.4 billion Yen

United Urban Investment Corporation, a J-REIT, has paid 8.435 billion Yen (approx. US$56 million) for the 8th floor in Toranomon Hills Business Tower. The cap rate is 3.3%.Read more

Harumi's office market woes continue

News broadcaster NHK has now picked up on the struggling office market conditions around Tokyo Bay, particularly Harumi island. Of interest is the Harumi Island Triton Square office complex. The landmark project was completed in 2001 with a shopping mall inspired by Southern Europe. Above, there are four office blocks with a total floor area of 383,300 m2 (4.1 million sq.ft).

Office occupancy was great up until five years ago, with some of the towers fully leased up. Now, there is around 10,000 tsubo or 33,000 m2 of vacant space. One of the office towers has a vacancy rate of 20%.Read more

Office vacancy rates in Tokyo shrink for 8th month in a row

The average vacancy rate for existing office buildings in Tokyo’s central five districts has seen a month-to-month decrease for the past 8 months. In January, it decreased by 0.15 points from the previous month to 5.17%. This is the lowest level seen since January 2021.Read more

Omotesando retail to sell for 5 billion Yen

This retail building in Omotesando is selling for 5 billion Yen. A-FLAG Kotto-dori is being sold by the Activia Properties REIT with delivery to take place by the end of May. The buyer is an unnamed domestic corporation.Read more