New Research

Office Market Report
Tokyo | Q2 2017


  • ● In the June 2017 quarter, the Tokyo 23 Wards' office market remained tight with the low vacancy rate at the 3% level. Although some of the new contract rent indicators showed slowdowns, it does not mean that the overall market turned weak.
  • ● The vacancy rate was 3.66%, a decrease by 0.10 points. Decrease in Vacant Space was 232,000 tsubo while the Increase was 217,000 tsubo; the decrease was larger than the increase. Vacancy Turnover Ratio (the ratio of vacant space leased during the quarter to all the vacancy stock) is rising.
  • New Contract Rent Index (the level of new lease rent) was 104, a decrease by 4 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, remained unchanged over the quarter at +6.
  • Paying Rent Index (the level of new lease rent and the level of existing lease rent combined) was 91, an increase by 3 points.
  • ● The free rent period is becoming shorter. Average Free Rent Month of Lease with Free Rent was 3.7 months, a decrease by 0.1 months.
  • ● The quarter's results somewhat varied. We will see whether they were the signs of change.
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