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Office vacancy rate in central Tokyo, 2.8% in March

2018.04.13

The feeling of shortage in office buildings is increasing. The vacancy rate in the center of Tokyo in March is 2.8%, which is the first time in 10 years since March 2008. With the increase in the number of employed workers such as women and seniors and the progress of working way reforms, the number of companies that extend the office is increasing. A large-scale redevelopment plan is expected to last until 20 years and there are voices that point out the future supply and demand mitigation.

The vacancy rate in the five central wards of Tokyo (Chiyoda, Chuo, Minato, Shinjuku, Shibuya) as of March released Miki Shoji Inc. on April 12 decreased by 0.23 points from the previous month. It is substantially lower than the 5% which is a measure of supply and demand balance. The average asking rent in the office is also 19,699 yen per 3.3 square meters, rising for 51 consecutive months. It reached the high price level since August 2009.

Trends are securing a wide office where employees can work easily, such as the introduction of free addresses where customers and employees are easy to pass and there are no fixed seats. Major companies engaged in working way reforms and IT companies are prominent in relocation and expansion movements. "Tokyo Midtown Hibiya" (Chiyoda, Tokyo), where Mitsui Fudosan started operations on March 29, operated with the office part almost fully occupied.

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Sumitomo Real Estate opened on March 20, "Osaki Garden Tower" (Shinagawa, Tokyo) started operation with Sega Sammy Holdings relocating its headquarters and occupancy rate of over 90%.

According to JLL, the rental area of a large office building completed in the central part of the city in 2018 is estimated to be about 600,000 square meters, which is expected to rise three times as much as 2017. However, it seems it is still "There is no vacancy in most buildings". (major brokerage)