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.
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
Harajuku Station Front Project to include retail and residential
NTT Urban Development Corporation will start work on the Harajuku Station Front Project later this year. The 5,000 sqm site is located in a prime position directly across the street from Harajuku Station and the greenery of Meiji Shrine and Yoyogi Park. This is likely become a retail and residential landmark building.Read more
Details released for Akasaka Twin Tower Redevelopment Site
Details were released earlier this month on the Akasaka 2 Chome Project near Tameikesanno Station in Tokyo. The project has received special permission under the National Strategic Special Zones Law and town planning approval is expected in 2017 or 2018. Completion is tentatively scheduled for 2022 2024.
The 11,866 sqm site is owned by Mori Trust and currently used as a car park. It was previously home to the 18-story Akasaka Twin Tower Building which was built in 1983 and demolished in 2015. The new office tower is likely to include an international hotel on the upper floors. Details on height and floor count have yet to be announced, although it could potentially be as tall as the Akasaka Tower Residence Top of the Hill apartment building located directly to the west of the site.Read more
215m tower for Minato Mita District
Details on Sumitomo’s redevelopment of a 4 hectare site just west of Mita Station in Tokyo have been released. The Mita 3 and 4 Chome District Redevelopment will include a 215m tall, 42-storey office tower, as well as several low-rise residential buildings. Construction is scheduled to start in 2018 with completion by 2023.Read more