Tokyo Office Space Market Index Q1 2015 Vacancy Rate | New Contract Rent Index | Contract Rent DI | Free Rent
Recovery spreads across the market, as witnessed by lease of long-time vacant spaces
Xymax Real Estate Institute releases the results of the office space market indices for the first quarter of 2015: Vacancy Rate, New Contract Rent Index, Contract Rent DI, Ratio of Free Rent Granted and Average Free Rent (Month).
Tokyo 23 Wards Office Space Market continues to be in the slow process of recovery backed by strong demand and limited new supply of office spaces as companies are hiring more office workers. The market is tight for those seeking office spaces in prime locations or with affordable rents. The rents of office spaces such as those in large buildings are increasing as a result. Meanwhile, if the rents are set appropriately, tenants sign lease of buildings that were less successful in leasing in the past. Thus, the recovery is prevailing throughout the market.
By Index (Tokyo 23 Wards)
・Vacancy Rate is 5.62%. A quarter-on-quarter decrease of 0.11 points and eleventh consecutive quarterly decrease. Available office spaces in some prime areas are becoming in short supply. Tenants are now signing lease for spaces that were vacant for a long time.
・New Contract Rent Index (level of contract rent) is 92. (Q1 2010 = 100) Overall index decreased by 2 points quarter-on-quarter; however, index for large buildings (over 5,000 tsubo gross floor area) increased by 5 points.
・Contract Rent DI (buildings with rent increase versus buildings with rent decrease) is 0. The number of buildings with rent decrease and those with rent increase were roughly the same this quarter.
・Average Free Rent (Month) is 2.7 months. A quarter-on-quarter decrease by 0.4 months. Long-term free rent (over 6 months) was given to 20.4% of new lease contracts; a quarter-on-quarter decrease by 4.7 points, indicating a compression of the free rent period.
- Summary of the indices is available on 6. Index Summary.
- Historical quarterly data is available on 7. Numerical Data for Entire Period.