Office vacancy rates in September – Miki Shoji

PMO Kanda TsukasamachiAccording to Miki Shoji’s office report, the vacancy rate in Tokyo’s 5 central business districts (Chiyoda, Chuo, Minato, Shinjuku and Shibuya) was 7.90% in September, down 0.26 points from last month and down 1 point from last year. This is the third month in a row where rates have fallen. It is the first time since November 2009 that vacancy rates have been in the 7% range.

The vacancy rate in new buildings was 18.12%, up 0.19 points from last month but down 11.50 points from September 2012.

The PMO Kanda Tsukasamachi building (pictured above) was completed in September. The 9-storey building has a total floor area of 4683 sqm.

Past vacancy rates:

  • 2013/09: 7.90%
  • 2013/08: 8.16%
  • 2013/07: 8.29%
  • 2013/06: 8.46%
  • 2013/05: 8.33%
  • 2013/04: 8.54%

Vacancy rates by area:

  • Chiyoda-ku: 6.23% (-0.21 points from last month)
  • Chuo-ku: 8.22% (+0.02 points)
  • Minato-ku: 9.27% (-0.46 points)
  • Shinjuku-ku: 9.35% (-0.42 points)
  • Shibuya-ku: 5.64% (-0.17 points)

Nationwide vacancy rates:

  • Tokyo: 7.90%
  • Osaka: 9.97% (-0.33 points from last month; +0.30 points from last year)
  • Nagoya: 10.00% (+0.01 points; -1.24 points)
  • Sapporo: 8.99% (-0.32 points; -1.22 points)
  • Sendai: 12.57% (-0.25 points; -1.96 points)
  • Yokohama: 8.81% (-0.27 points; -2.17 points)
  • Fukuoka: 11.13% (-0.16 points; -0.96 points)

Average office rent:

The average monthly office rent in Tokyo’s five business districts was 16,230 Yen per Tsubo* (4,918 Yen/sqm) in September, down 38 Yen from the previous month and down 445 Yen from last year. Rent was down in all five areas.

The average monthly rent in new office buidings was 25,578 Yen per Tsubo* (7,751 Yen/sqm) in September. There was no change from the previous month, but rents are 2,140 Yen higher than September 2012.

Average monthly office rent by area:

  • Chiyoda-ku: 17,618 Yen/Tsubo (-16 Yen from last month; -369 Yen from last year)
  • Chuo-ku: 15,258 Yen/Tsubo (-21 Yen; -680 Yen)
  • Minato-ku: 16,768 Yen/Tsubo (-48 Yen; -497 Yen)
  • Shinjuku-ku: 13,723 Yen/Tsubo (-35 Yen; -403 Yen)
  • Shibuya-ku: 17,010 Yen/Tsubo (-11 Yen; -64 Yen)

Average monthly office rent across Japan:

  • Tokyo: 16,230 Yen/Tsubo
  • Osaka: 11,257 Yen/Tsubo (+4 Yen from last month; -101 Yen from last year)
  • Nagoya: 10,833 Yen/Tsubo (-6 Yen; -69 Yen)
  • Sapporo: 8,188 Yen/Tsubo (-10 Yen; -18 Yen)
  • Sendai: 9,101 Yen/Tsubo (-9 Yen; -22 Yen)
  • Yokohama: 10,564 Yen/Tsubo (+18 Yen; +9 Yen)
  • Fukuoka: 9,258 Yen/Tsubo (+4 Yen; -131 Yen)

*1 Tsubo = approximately 3.3 sqm or 35 sqft.

Source; Miki Shoji Office Report, October 2013 ()