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
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
Higher rents and lower vacancy rates expected for Tokyo’s office market
Central Tokyo’s office market is experiencing a rebound as vacancy rates drop to their lowest level since 2009. According to Miki Shoji, the vacancy rate in Tokyo’s central five wards (Chiyoda, Chuo, Minato, Shinjuku and Shibuya) was 6.70% in March - the first time it had fallen below 7% in 4 years and 10 months. In April, it dropped a further 0.06 points to 6.64%.
As market conditions and business outlooks improve, demand is growing from companies looking to locate their operations in earthquake-resistant buildings in the centre of the city. Read more