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Commercial Rent in Downtown Tokyo up 12.86% Over Last Year

August 31, 2007
By Ken Worsley


On Thursday, real estate firm Miki Shoji released their quarterly Tokyo Office Building Market Research Report for July 2007. The report covers the five central wards of Tokyo (Shinjuku, Shibuya, Minato, Chiyoda and Chuo Wards). They surveyed 2,612 office buildings (27 new and 2,585 pre-existing) that have at least 330 square meters of office space for rent on each floor. New buildings are defined as having their office space come online after July 1, 2006.

The first noteworthy statistic is that vacancy rates at new large office buildings in Tokyo stood at 3.43%, which was higher than the 1.76% measured in July 2006, and also higher than the 2% vacancy rate from April of this year. The overall average vacancy rate, however, was down 0.23%, and the vacancy rate at existing buildings was at 2.85%, down from 3.13% a year ago.

Chiyoda and Chou wards remained the places with lowest vacancy rates, hovering around 2%, while Minato and Shinjuku wards stood at 3.87% and 3.68%, respectively. In Shibuya, the vacancy rate was at 3.06%.

Average rent continues to soar. At the end of June, the average rent in the five major wards surveyed stood at 20,794 yen per tsubo, which is about 3.3 square meters. This was 12.86% higher than a year ago. It was also 285 yen higher than the figure from Miki Shoji’s April report.

The average rent at large newly built buildings, however, was at 34,335 yen per tsubo, which is 26.91% higher than a year ago. This translates into an average increase of 7,281 yen per tsubo, which is about 2,200 yen higher per square meter than a year ago.

A pdf copy of Miki Shoji’s report can be accessed from our Research and Reports page.

Filed Under Economic Reports, Economics, Real Estate 

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Comments

One Response to “Commercial Rent in Downtown Tokyo up 12.86% Over Last Year”

  1. Michael Rosenfeld on June 30th, 2008 8:47 am

    I would like to open new fast food chain in Tokyo. My product is unique and have not seen it there. I only need about 100 square feet. Very tiny shop space. It could be in office buildings, ground floor, or tiny spaces located thru out the city. It would even work very well with so called kiosks or push carts located on every corner if that is allowed. Each unit is a one to two person operation. These are quite prevelent in U.S. There is no cooking involved. Any comments from your company and advise is greatly appreciated.first, your feedback, and then perhaps a fee for your services. (licenses, locations, employees, etc.)

    Thank you very much, Michael

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