New Research

Office Market Report
Tokyo | Q4 2015


  • ● Tokyo 23 Wards' overall office market continued to see a shortage of available space because of the strong demand from corporate tenants. Even so the growth of new rents remained modest. Companies are taking forward-looking relocation strategies, such as seeking better location, expanding space or moving to a high-grade building. The buildings that meet such demands achieved higher rents, but overall rental growth was probably affected by the decreasing or unchanging rents of buildings that failed to meet such demands.
  • ● Vacancy rates decreased for 14 straight quarters, dropping 0.38 points to 4.83%. Overall market vacancy decreased steadily. Available space has been in short supply particularly that of large buildings in high-demand areas.
  • ● New Contract Rent Index (level of new rents) was 96; no change from previous quarter. Contract Rent DI (percentage of buildings with rent increase minus percentage of buildings with rent decrease) was +18.
  • ● Paying Rent (level of new rents and existing rents combined) was 82; no change from previous quarter.
  • ● Average Free Rent Month was 2.6 months, an increase of 0.4 month from previous quarter. Six-month free rents were given to 24.6% of all the contracts, an increase of 8.1 points from previous quarter; after a sharp drop in the previous quarter, the level is now equivalent that of two quarters ago.
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