New Research

Office Market Report
Tokyo | Q1 2018


(1 tsubo = 3.3 sqm)

  • ● In the January–March quarter, the Tokyo 23 Wards’ office market saw a continued drop in the vacancy rate, as new supply of large buildings succeeded to find tenants promptly. The rising trend of new contract rent has also continued.
  • ● The vacancy rate was 2.51%, down 0.45 points from the previous quarter. The Decrease in Vacant Space exceeded Increase, with 256,000 tsubo decreasing and 205,000 tsubo increasing. The Vacancy Turnover Ratio (the ratio of vacant space leased during the quarter to all the vacancy stock) continued to rise.
  • ● The New Contract Rent Index (the level of new lease rent) was 109, up 3 points. The 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 above zero for the twelfth consecutive quarter at +15.
  • ● The Paying Rent Index (the level of new lease rent and the level of existing lease rent combined) rose 1 point to 90.
  • ● The Average Free Rent Month of Lease with Free Rent was 3.9 months, an increase of 0.3 months. Although the percentage of free rent of 6 months or more was small, granting of free rent has become common.
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