New Research

Office Market Report
Tokyo | Q1 2016


  • ● In Tokyo 23 Wards' overall office market, both the vacancy rates and contract rent continued to improve reflecting the stable demand from corporate tenants and the limited supply of new spaces. A full-fledged rent recovery is, however, achieved only in some cases because companies are cost conscious. Therefore the overall rental growth remains slow.
  • ● Vacancy rates were 4.46%, decreased by 0.37 points from previous quarter; 15 straight quarters of decrease. Available spaces particularly in large buildings are steadily taken up by companies who are planning to consolidate and/or relocate their offices.
  • ● New Contract Rent Index (level of new rents) was 97; an increase of 1 point from previous quarter. Contract Rent DI (ratio of buildings with rent increase minus ratio of buildings with rent decrease) was +17. The rent is growing at a modest pace.
  • ● Paying Rent (level of new rents and existing rents combined) was 84; an increase of 2 points from previous quarter.
  • ● Average Free Rent Month was 3.2 months, an increase of 0.3 months from previous quarter. Six-month free rents were given to 35.2% of all the contracts, an increase of 6.6 points from previous quarter.
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