New Research

Office Market Report
Tokyo | Q3 2016


  • ● A modest recovery of the vacancy rate and contract rent continued in the Tokyo 23 Wards' office market, driven by the stable demand from corporate tenants. The tenant's demand expanded to include periphery areas because of the limited availability in the central part of Tokyo.
  • ● The vacancy rate was 4.08%; decreased by 0.37 points from previous quarter. The vacancy level remained low because only a few large buildings were completed this quarter.
  • ● New Contract Rent Index (the level of new lease rent) was 104; increased by 6 points from previous quarter. Contract Rent DI (calculated by subtracting the ratio of buildings with a rent decrease from the ratio of buildings with a rent increase) was +21; increased by 4 points.
  • ● Paying Rent (the level of new lease rent and that of existing lease rent combined) was 84; increased by 2 points from previous quarter.
  • ● Average Free Rent Month was 3.1 months; increased by 0.3 months from previous quarter. Although in a general view, the free rent period seems to be shorter, the average period actually resulted in an increase influenced by some cases of long free rent of longtime vacant buildings in the periphery area.
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