New Research

Office Market Report
Tokyo | Q4 2016


(1 tsubo = approx. 3.3 sq m)

  • ● In the December 2016 quarter, the Tokyo 23 Wards' office market continued to see solid demand for office space; the vacancy rate decreased and the contract rent increased as companies posted strong results and hired more office workers. However, the rental growth was slow and some owners of large buildings or other buildings decided to lower the asking rents.
  • ● The vacancy rate was 3.85%, a decrease by 0.23 points. Increase and Decrease in Vacant Space, which is Xymax's new indicator released from this quarter, showed that a quarterly decrease in vacant space was 238,000 tsubo while an increase in vacant space was 210,000 tsubo; the decrease exceeded the increase.
  • ● New Contract Rent Index (the level of new lease rent) was 107, an increase by 3 points. Contract Rent Diffusion Index (calculated by subtracting the percentage of buildings with a rent decrease from the percentage of buildings with a rent increase) was +18, a decrease by 3 points.
  • ● Paying Rent Index (the level of new lease rent and that of existing lease rent combined) was 86, an increase by 2 points.
  • ● Average Free Rent Month was 2.8 months, a decrease by 0.3 months. Ratio of Free Rent Granted also decreased for all the periods.
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