Office vacancy rates in October 2014 - Miki Shoji

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 5.60% in October, down 0.05 points from the previous month and down 1.96 points from last year.

The vacancy rate in brand new office buildings was 14.98%, up 1.08 points from the previous month but down 2.06 points from last year.Read more

by Zoe Ward

Redevelopment for west side of Shinbashi Station

Shinbashi Station Redevelopment SL Hiroba

Redevelopment plans are underway for the area on the western side of Shinbashi Station in Tokyo. On November 5, landowners decided in favour of a project to be led by Nomura Real Estate and NTT Urban Development with completion expected in 2023.

The proposed 3 hectare site adjoins Shinbashi Station and includes the SL Square and Sakurada Park. One of the buildings to be redeveloped is the New Shimbashi Building, which contains approximately 300 restaurants and stores. Despite the ‘New’ name, the 11-storey building was built in 1971. Read more

by Zoe Ward

High-rise office and apartments for Takeshiba

Tokyo Takeshiba Redevelopment 1

On October 29, Tokyo Land and Kajima Corporation announced plans for high-rise office and residential buildings in the waterfront Takeshiba area in Minato-ku. The project will also provide facilities for trade and content promotion and international expansion. JR Hamamatsucho and Takeshiba Station will be connected via a 500 meter long pedestrian bridge.

The project is expected to be completed in 2019.Read more

by Zoe Ward

Pembroke’s latest project in Roppongi

Try Seven Roppongi

Pembroke Real Estate Japan have started the construction of a 14-storey office building in located across the street from Tokyo Midtown in Roppongi 7 Chome. Try-Seven Roppongi is scheduled for completion in 2016. The exterior was designed by Jun Mitsui & Associates Architects.

A shrine and shrine office on an adjoining 876 sqm block of land will also be redeveloped in conjunction with Try-Seven.

This is the fourth development for Pembroke. In 2002 they developed Hikawa Gardens, a rental apartment building in Akasaka, and in 2010 they completed Azabu Gardens, a luxury expat rental building near Roppongi Hills.

Sources:
The Asahi Shimbun, October 28, 2014.
The Daily Engineering & Construction News, October 29, 2014.

by Zoe Ward

Mori Trust announces plans for high-rise office and hotel in Toranomon

Tokyo Toranomon 4 Chome Project 2

On October 23, Mori Trust announced plans for a 180m mixed-use building for the former Toranomon Pastoral building site in Toranomon 4 Chome.

The 36-storey building will contain a hotel, serviced apartments, office and retail space. Construction is scheduled to begin in 2015 with completion by 2018. The new building will be approximately 500 meters from the proposed new station along the Hibiya Line.Read more

by Zoe Ward

Hotel and office development for Tamachi Station area

Tamachi TGMM Shibaura Project

Tokyo Gas, Mitsui Fudosan and Mitsubishi Jisho announced plans for the redevelopment of a 2.8 hectare site behind Tamachi Station in Minato-ku.

The TGMM Shibaura Project will include:

  • Office Tower (A): 180m tall; 31 floors.
  • Office Tower (B): 185m tall; 36 floors.
  • Hotel: 65m tall; 9 floors.
  • Welfare Center: 35m tall; 6 floors.

Construction is expected to start in 2015 and should be completed by 2019. Read more

by Zoe Ward

Office vacancy rates in September 2014 - Miki Shoji

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 5.65% in September, down 0.37 points from the previous month and down 2.25 points from last year. This is the first time since February 2009 that vacancy rates had dropped to the 5% range.

The 5% range is considered to be the tipping point between supply and demand. As a result, real estate companies have started to raise rents. Mitsubishi Jisho have begun seeking an increase of rent of around 5 ~ 10% in the 30 buildings they own in the Marunouchi and Otemachi business district in front of Tokyo Station. Mori Building have also started negotiating with tenants in relatively new buildings for higher rents. Mitsui Fudosan are also setting higher rents for new leases.

Meanwhile, office tenants continue to seek ways to control costs and mid-size and regional building owners are hesitant to raise rents. While vacancy rates have fallen sharply, rents are not increasing at the same speed.Read more

by Zoe Ward