Hublot moves into historic machiya in Gion, Kyoto

Swiss watch brand Hublot will be opening up a boutique in an old machiya-style townhouse in Kyoto’s famous Gion district on August 26. The previous tenant was Hermes.

The shop will feature custom Japanese washi paper and wickerwork replicating the company’s logo, while customers will receive Japanese-style folding fans as gifts.

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Shinjuku office vacancy rate drops to 1% range

The office vacancy rate across Tokyo’s five central business districts of Chiyoda, Chuo, Minato, Shinjuku and Shibuya dropped to 3.22% in July, down 0.04 points from June and down 0.72 points from July 2016. This is close to the record low of of 3.03% reported in April 2008 and down from a high of 9.43% seen in June 2012.

The vacancy rate in existing buildings (excluding new construction) was 2.87% in July, down 0.74 points from last year.

In Shinjuku ward, the vacancy rate was 1.68%, down 0.06 points from the previous month and down 1.30 points from last year. The vacancy rate dropped to the 1% range in May 2017.

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265m tall tower for Toranomon Hills district

More details have been released on the Toranomon Hills Station Tower which will be built on the north-west side of Toranomon Hills in central Tokyo. The building height will be 265 meters, which is 18 meters taller than the neighbouring Toranomon Hills tower and 17 meters taller that Tokyo Midtown.

Construction of the 49-storey tower is scheduled to start in 2019 with completion by 2022 2023.

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287m tall high-rise planned for Nihonbashi

Details on the Nihonbashi 1 Chome Central District Redevelopment have been announced. The project will include a 287m tall high-rise with office, hotel and serviced apartments, as well as several low-rise retail, office and residential buildings.

The high-rise tower will be taller than Tokyo Midtown (248m), Toranomon Hills (247m) and the Tokyo Metropolitan Government Building (242m), but shorter than the 390m tall tower planned for the Tokiwabashi Redevelopment Project located 300 meters to the west of the Nihonbashi site.

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Kyoto’s tourism boom creates office shortage

With office vacancy rates in the 2% range, commercial tenants in Kyoto are reporting difficulty in finding new office space as the city’s supply of office buildings dwindles.

This year, parts of Higashiyama, Nakagyo and Shimogyo saw rosenka land values increase by over 20%. Rising land values are being supported by the city’s booming tourist industry which is causing real estate companies and hoteliers to aggressively seek sites to develop hotels and high-end apartments. With a scarce supply of vacant sites, office buildings are being torn down and replaced with hotels, shrinking office inventory.Read more


Tokyo office rents increase for 40th consecutive month

According to Miki Shoji’s Office Report, the office vacancy rate in Tokyo’s five central business districts of Chiyoda, Chuo, Minato, Shinjuku and Shibuya was 3.39% in April 2017, down 0.21 points from the previous month and down 0.84 points from last year. This is the lowest vacancy level seen in 9 years. The vacancy rate in Shinjuku was 2.03% - the lowest of all five wards and down 2.20 points from April 2016.

Vacancy rates in Tokyo:
Chiyoda 3.31% (-0.26 points from Apr. 2016)
Chuo 3.09% (-0.98 points)
Minato 4.55% (-0.93 points)
Shinjuku 2.03% (-2.20 points)
Shibuya 2.22% (-0.03 points)

 

AVERAGE OFFICE RENT

Office rents increased for the 40th month in a row. The average rent in April 2017 was 18,583 Yen per Tsubo* (5,622 Yen/sqm) in April, up 0.4% from the previous month and up 4.1% from last year. The average rent on brand new construction was 26,785 Yen per Tsubo (8,104 Yen/sqm), down 6.8% from last year.

Average monthly office rent in Tokyo (Rent per Tsubo):
Chiyoda 20,373 Yen (+4.6% from Apr. 2016)
Chuo 17,283 Yen (+4.2%)
Minato 19,298 Yen (+4.2%)
Shinjuku 16,297 Yen (+5.3%)
Shibuya 20,507 Yen (+1.7%)

 

Source: Miki Shoji, May 2017.


Mitsubishi sells Yokohama Building for 76 billion Yen

On March 30, Mitsubishi Heavy Industries announced the sale of their Yokohama Building for 76.1 billion Yen (approx. 688 million USD) to HULIC and KRF.

The sale included the 33-story office building and the 20,000 sqm block of land. The adjoining house exhibition showground on the north-west side of the office tower was included as part of the sale.  Mitsubishi will continue to occupy the building as the main tenant.Read more