Central tokyo office vacancies up for 16th straight month in May

June 12, 2009
By Ken Worsley

According to data released Thursday by consultancy Miki Shoji, vacancies at office spaces in downtown Tokyo rose 0.17% in May against a month ago, to 6.96%. Office vacancies in downtown Tokyo have now increased for 16 consecutive months.

After having dipped below the 30% mark in April, vacanices at newly built large office buildings in Tokyo shot up to 30.83% in May. This is still somewhat down from the peak of 34.33% seen in March, but the increase is worrisome news for developers.

In terms of individual areas, Shinjuku Ward took the lead in terms of vacancies in May, with its rate coming in at 8.49%. Chuo Ward had the lowest vacancy rate, at 5.11%.

The average asking rent in the five wards surveyed (Chiyoda, Chuo, Minato, Shinjuku and Shibuya) stood at 20,660 yen per tsubo, or about 3.3 square meters in May. That price was down 305 yen (1.45%) from April, and 2,166 yen (9.49%) from a year ago. Average office rents have now fallen for nine consecutive months.

Rents at newly opened large offices, however, increased by 1,968 yen per 3.3 square meters, or just about 6.00%, to hit 30,859 yen.

Filed Under Business, Real Estate