Chiyoda office vacancy rate reaches 39-month low
In February, the office vacancy rate in the Chiyoda business district in Tokyo reached the lowest level in 39 months. According to office brokerage Miki Shoji, the vacancy rate dropped by 0.2 points from the previous month to 2.96%. This is 1.4 points lower than 12 months ago.Read more
Slim pickings for large apartments in Tokyo
Small housing options continue to dominate Tokyo's rental supply, while larger ones remain a rare find. In the 23 wards, 93% of rental apartment listings are under 60 m2 (645 sq.ft) in size and just 0.7% are over 100 m2 (1,076 sq.ft) in size. Read more
Omotesando office building sells at 3% cap rate
A recently-built office building in Omotesando has been acquired by a J-REIT at an assumed cap rate of 3.0%. Japan Real Estate Investment Corporation (JRE) acquired a 77% ownership interest in the 13-story ‘3rd Minami Aoyama’ building from its sponsor Mitsubishi Estate for 21 billion Yen (approx. US$143 million) on March 8.Read more
Toranomon Hills Business Tower floor sells for 8.4 billion Yen
United Urban Investment Corporation, a J-REIT, has paid 8.435 billion Yen (approx. US$56 million) for the 8th floor in Toranomon Hills Business Tower. The cap rate is 3.3%.Read more
Rents fors larger apartments reach record high in January
Advertised apartment rents in Tokyo have been on a noticeable increase since around mid-2022, but it’s the larger apartments that have been seeing the highest rate of rental growth.Read more
Thinking of converting multi-family to short-term furnished rentals?
With cap rates on some multi-family buildings in Tokyo now in the 3% range, furnished or short-term say rentals in Tokyo are an appealing tactic for investors looking to squeeze out some higher rents. We have sourced a few of these options recently that are available for purchase while still under construction.Read more
Domestic REIT acquires multi-family portfolio at 3.7% cap rate
Japan Metropolitan Fund Investment Corporation (JMF) is acquiring the trust beneficiary rights to four rental apartment buildings in Tokyo for 9.5 billion Yen (approx. US$63 million), with an appraised net yield averaging 3.7%.Read more