Central Tokyo office vacancies up for seventh straight month in August

September 21, 2008
By Ken Worsley

In late August, real estate consulting firm Miki Shoji announced that average office rents in Tokyo had fallen for the first time in 25 months when compared to the figure from the previous month. Although the decline was slim - 0.03% - it speaks volumes about the state of Tokyo’s office rental market.

Vacancy rates in the downtown Tokyo are have been on the rise for seven straight months, and they hit 3.86% at the end of August, again according to Miki Shoji. In July, central Tokyo’s vacancy rate went above 3.5% for the first time since early 2006. At the same time, Miki Shoji’s August data shows that advertised rents increased slightly on July’s, by 0.18%.

Compared to year-on-year figures, rents are still high: August’s 22,901 yen per tsubo (about 3.3 square meters), is 8.56% higher than a year ago.

Miki Shoji’s report hints that companies are downsizing to smaller offices, or holding off on any expansion. At the same time, a rise in vacancies has been noted at luxury offices.

Filed Under Real Estate