Vacancy rate for distribution facilities at low level
According to research by Ichigo Real Estate Service, the vacancy rate for distribution facilities in greater Tokyo in October 2012 was 2.5%. While this figure has increased by 0.2% since the last data collection in July, it remains at a very low level.
With the completion of Prologis Park Zama 2 in August, the new supply of distribution facilities reached a three year high of 808,500 sqm (8,699,460 sqft). Most of the new space was taken up by demand, which reached 735,000 sqm (7,918,284 sqft). This helped to limit the rise in the vacancy rate.Read more
Chiyoda-ku office bldg sold for 50 billion Yen
Tokyu Land, the Development Bank of Japan (DBJ) and Kenedix have purchased the former head office of the Shinsei Bank in Chiyoda-ku from a Morgan Stanley fund for 50 billion Yen (605 million USD) - less than half what Morgan Stanley paid for it in 2008.
The new owners plan to demolish the 19-year old building and replace it with a new one. The total cost of the project, including purchasing the existing building, is estimated at 80 billion Yen (970 million USD).
Demolition will commence in 2013 and the new 20-storey building will be completed in 2017. The new building will have a total floor area of 57,500 sqm, and will be almost the same scale as the current building, which is 60,000 sqm. However, the new building will have more leasable floor space.Read more
Office building to be torn down after 2 years
This would set a record for one of the shortest lived office buildings in Japan. Only two years after completion, a high-rise office building near Osaka's Umeda area is now facing a threat of demolition.
Midosuji Front Tower is located in alongside Midosuji Avenue in Sonezakishinchi 1 Chome in Kita-ku. The 20 story building was completed in June 2010 and has a total floor area of 18,000 sqm (193,680 sqft). It was intended to be let out to tenants but the construction barricades around the building have never been removed and it has never been occupied.
In 2003, Toyo Real Estate bought the 1700 sqm site. After approaching Mitsubishi Jisho, the two companies set up a special purpose company in 2007 to develop the site. Both parties would contribute funds to the project while the remaining majority was to be financed. The SPC entered into an agreement with Kajima Corporation to construct the building at a cost of 5 billion Yen. When completed, the building was expected to bring in an annual rent of between 800 million ~ 1 billion Yen.Read more