Tokyo office vacancy rates reach 6 year low

According to Miki Shoji’s Office Report, the vacancy rate in Tokyo’s five central business districts (Chiyoda, Chuo, Minato, Shinjuku and Shibuya) was 5.31% in February, down 0.05 points from January and down 1.70 points from last year. This is the lowest level seen since January 2009 and is the 20th month in a row to see an improvement in vacancy rates.

The vacancy rate in brand new office buildings was 29.31%, up 14.46 points from the previous month and up 9.66 points from last year. A large-scale office building was completed in February, which added to the supply for the month. Read more

by Zoe Ward

600 billion Yen project announced for Yaesu

Tokyo Station Yaesu Development
54-storey tower (left) and 45-storey tower (right).

Mitsui Fudosan and Tokyo Tatemono have plans for a 600 billion Yen (5 billion USD) redevelopment on the eastern side of Tokyo Station. Two buildings up to 250 meters tall will be built in the Yaesu 1 and 2 Chome districts. The developers are considering including residential, retail, education, cultural and medical facilities with English-speaking staff in the complex. The Yaesu area currently has a resident population of just 110 people, so residential supply has been very limited.

The redevelopment site is located in a National Strategic Special Zone. These zones have been created to encourage the creation of full-service business districts that are internationally competitive. Developers may receive allowances to provide for extra floor-area ratios and foreign companies may receive additional benefits to locate in these areas.Read more

by Zoe Ward

Land prices continue to rise - MLIT LOOK Report

According to the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) Chika LOOK Report for the fourth quarter of 2014 (October 1 ~  January 1), land prices increased in 83% of the surveyed locations across Japan. For the second quarter in a row, none of the locations saw a decline in land prices.

The Chika LOOK Report is a quarterly survey of land price movements of 150 commercial and residential locations across Japan. In the last quarter, 125 locations saw an increase, up from 124 locations in October 1, 2014. Two of those locations saw land prices rise 3 ~ 6% (the Toranomon area in Tokyo and the Ohori area in Fukuoka), while 25 locations saw no change in land prices.

In the greater Tokyo area, 90.8% of locations saw an increase in land prices, while 79.5% of locations in the greater Osaka area saw an increase.

Read more

by Zoe Ward

Tokyo office vacancy rate falls to 6 year low

According to MIki Shoji’s Office Report, the office vacancy rate in Tokyo’s five central business districts (Chiyoda, Chuo, Minato, Shinjuku and Shibuya) was 5.36% in January 2015, down 0.11 points from the previous month and down 1.82 points from last year.

The vacancy rate in brand new office buildings was 14.85%, up 1.45 points from the previous month and up 0.43 points from last year.Read more

by Zoe Ward

53-yr old office conversion in Chiyoda-ku

The C Uchikanda 3

Real estate developer Hulic Co., Ltd. has converted a 53 year old office building in Chiyoda-ku into a trendy shared apartment, office and event space.　The building has been named ‘the c’ to represent the keywords behind the project, which were central, conversion, communication, culture and create.

Floors 3 to 9 have been converted into shared residential space, with a shared office space located on the 2nd floor.　The top floor of the building has been turned into a shared lounge, theatre room and dining space for both residents and office workers. An event space was created in the building’s basement which can be rented out for events and meetings. The rooftop has an open terrace with wi-fi access.Read more

by Zoe Ward

Office vacancy rates in Tokyo down for 18th consecutive month

According to Miki Shoji’s office report, the office vacancy rate in Tokyo’s five central business districts (Chiyoda, Chuo, Minato, Shinjuku and Shibuya) was 5.47% in December 2014, down 0.08 points from the previous month and down 1.87 points from last year. This is the 18th month in a row to see a month-on-month decrease in vacancy rates.

In Minato-ku, vacancy rates dropped to the 5% range for the first time since January 2009.

The vacancy rate in brand new office buildings was 13.40%, down 0.33 points from the previous month and down 1.10 points from last year. Only one office building was completed in December and was fully leased at the time of completion.Read more

by Zoe Ward

High-rise plans for northern side of Toranomon Hills

Toranomon 1 Chome District A
District A (Left), District B (Right)

On December 12, the Tokyo Metropolitan Government’s Bureau of Urban Development announced details for the Toranomon Station South District Plan. There are plans for this project to be certified under the National Strategic Special Zone, which could provide an allowance to increase the floor space for the site.

District A

District A (Toranomon 1-17~20), which is a 1.5 hectare site directly across the street on the northern side of Toranomon Hills, currently contains several smaller buildings including the Toranomon 10 Mori Building (1966) and the Nishimatsu Building (1962). Current plans are for a 36-storey, 185m tall office building with a total floor area of 175,000 sqm. Development approval is expected to be announced in June 2015. If approved, construction will start in February 2017 with completion expected by December 2019.Read more

by Zoe Ward