New Research

Contract rent and free rent both show improvements in Tokyo’s office market

Xymax to release office lease indices covering small, medium and large properties

Xymax Real Estate Institute released the “Contract Rent Diffusion Index” (Contract Rent DI) developed using the office lease data Xymax Group has collected and accumulated over time. Based on this index, Xymax Real Estate Institute analyzed the market movements and compared the index with the asking rent data. In addition, to understand the actual lease terms and conditions agreed, the free rent offer trends were also studied.


  • ・In the analysis of office leases in Tokyo 23 wards, buildings with new lease contract agreed in two consecutive years (FY2012 and FY2011) were used as sample data. Though many buildings continued to see their contract rents to decrease year-on-year in FY2012, the number of such buildings were fewer than the previous year, indicating that the Contract Rent DI is on track for recovery.
  • ・In the analysis of rent volatility, the year-on-year rent decreases in FY2012 were smaller while the year-on-year rent increases in FY2012 were greater, improving average rent volatility to +0.5%.
  • ・Market changes are timely reflected in contract rent, ahead of the more publicly available data like asking rent.
  • ・More free rent offers and longer rent-free period had been seen since FY2009 but the rally slowed in FY2012, indicating that the market is moving toward recovery.

The full report is available below:

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