Office vacancy rates in August 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 6.08% in August, down 0.18 points from the previous month and down 2.14 points from last year.
The vacancy rate in brand new office buildings was 18.17%, up 0.76 points from the previous month and up 0.24 points from last year.Read more
Mori Trust buys Meguro Gajoen despite ongoing lawsuit
In August, it was announced that Mori Trust had acquired Meguro Gajoen from Loan Star Funds for approximately 130 billion Yen. Singapore’s GIC was previously in talks to purchase the property for 134 billion Yen but backed out due to concerns over a legal dispute brought up by the original landholders.
Meguro Gajoen is a wedding hall, hotel and office building complex located 250 meters west of Meguro Station in Tokyo. Mori Trust acquired a large majority of the land (37,000 sqm) as well as the following five buildings with a total floor area of 150,000 sqm:Read more
Toranomon 2 Chome Redevelopment Project
On July 15, the Tokyo Metropolitan Government approved the re-development plans for the Toranomon Hospital and National Printing Bureau site in Minato-ku.
The 145.6 billion Yen project will include a 19-storey hospital building and a 179m tall, 36-storey commercial building. The hospital building will be rebuilt from 2015 ~ 2018, with the office tower to be built between 2019 ~ 2022. The entire project is expected to be completed by 2024.
There are a number of major redevelopment projects in the Toranomon area, including the recently completed Toranomon Hills, the future redevelopment of Hotel Okura, the redevelopment of the Toranomon Pastoral Building (Toranomon 4 Chome Project) and the Akasaka 1 Chome Redevelopment.Read more
Office vacancy rates in July 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 6.20% in July, down 0.25 points from the previous month and down 2.09 points from last year. This is the lowest level seen since March 2009 when vacancy rates were 6.05%.
The vacancy rate in brand new buildings was 17.41%, down 0.68 points from the previous month but up 4.69 points from last year.
The following office buildings were completed in July:
- Mercros Building, Nihonbashi, Chuo-ku: 9 floors; 6,980 sqm floorspace.
- Tamachi Front Building, Shiba, Minato-ku: 9 floors; 5,730 sqm floorspace.
- PMO Shiba Koen, Minato-ku: 8 floors; 3,500 sqm floorspace.
Office vacancy rates in June - 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 6.45% in June, down 0.07 points from the previous month and down 2.01 points from last year.
The vacancy rate in brand new buildings was 18.09%, down 2.33 points from the previous month but up 6.49 points from last year.
It is not just large-scale office buildings that are experiencing better conditions, but mid-size buildings are also seeing a boost in demand. All 11 buildings developed under Nomura’s mid-size office brand ‘Premium Midsize Office (PMO)’ are almost fully occupied. Mitsubishi’s renovated small-to-mid sized office building in Kanda is also almost fully occupied. The building has attracted several IT-related tenants who want the freedom to design their own office space. Read more
Year-on-year increase in Tokyo office rent for first time since 2008
According to Miki Shoji’s Office Report, the average office rent in Tokyo’s central five business areas (Chiyoda, Chuo, Minato, Shinjuku and Shibuya) in May had increased by 0.21% from 12 months prior. This is the first time since December 2008 that office rents had seen a year-on-year increase. It is also the fifth month in a row to see a month-on-month increase, indicating a turnaround in market conditions.
Landlord, Mitsubishi Jisho, have already hiked up the rent for some existing office tenants by 5 ~ 10%, and new tenants are being faced with rents that are 10 ~ 20% higher than they were in 2012.Read more