Xymax Real Estate Institute Corporation (“Xymax Real Estate Institute”) upgraded the Contract Rent Diffusion Index (DI) report released in June this year to a quarterly basis from this issue (Q3 2013 July - September) covering Tokyo 23 Wards as well as Tokyo Central Three Wards.
The Contract Rent DI represents office market conditions from changes in rent per tsubo agreed for new lease in the same building (“rent increase”, “no change”, or “rent decrease”). This index is unique because it is based on the contract rent data which can more appropriately reflect the actual lease agreements than the asking rent data as there is generally a gap between asking rent and contract rent.
The Contract Rent DI for Q3 2013 was +6 in Tokyo 23 Wards and +2 in Tokyo Central Three Wards, posting positive DI for three consecutive quarters. The DI turned positive in Q1 2013 after five years of negative figures, and since then the number of new lease contract with rent increase continued to exceed those with rent decrease. The upward trend in office market is also apparent in the four-quarter moving average.
Please refer to our news release on June 3, 2013 for the previous DI.