Post: Wednesday November 27, 2013
The office vacancy rate for the 5 central districts of Tokyo continues to decline for the fourth consecutive month.
With anticipation of an economy recovery, the demand for office properties continue to increase. On November 7th, one of the largest office property agents in Tokyo, "Miki Shoji" announced the vacancy rate in the five central Tokyo districts (Chiyoda-ward, Chuo-ward, Minato-ward, Shinjuku-ward and Shibuya-ward) at the end of October marked 7.56%. This declined further by 0.34% from the previous month and is the lowest rate in the past four years and four months.
The average posted rent increased in the five districts for the first time in one year and four months, to reach 16,237 yen/3.3 sqm., which is 7 yen more than a month ago.
Buildings that are conveniently close to a station, and are more tolerant against disasters such as earthquakes continue to attract more attention. It is also noticeable that successful companies are expanding, merging or relocating to a more high-grade office. It is anticipated that the average vacancy rate will continue to decline as the balance between demand and supply improves, and may result in a continuing increase in the average rent.