● Vacancy rates and contract rents continued to recover in the Tokyo 23 Wards' office market driven by demand from corporate tenants, but the degree of recovery was small and no significant change was observed. Some companies started to take a careful look at relocation because of the uncertain economic outlook.
● Vacancy rates were 4.45%; decreased by 0.01 points from previous quarter. Available spaces in large buildings completed this year were steadily taken up by tenants, which contributed to the low vacancy rates.
● New Contract Rent Index (level of rents in new lease) was 98; increased by 1 point from previous quarter. Contract Rent DI (ratio of buildings with rent increase minus ratio of buildings with rent decrease) was +17; remained unchanged from previous quarter.
● Paying Rent (level of rents in new lease and those in existing lease combined) was 82; decreased by 2 points from previous quarter.
● Average Free Rent Month was 2.8 months; decreased by 0.4 months from previous quarter. The free rent period is on the decrease since 2012.