{"id":1609,"date":"2021-11-18T18:36:27","date_gmt":"2021-11-18T09:36:27","guid":{"rendered":"https:\/\/glocaly.tokyo\/en\/?p=1609"},"modified":"2024-07-02T18:01:20","modified_gmt":"2024-07-02T09:01:20","slug":"latest-office-building-market%ef%bd%9e-impacted-by-covid-19-slight-increase-in-vacancy-rates-in-central-tokyo","status":"publish","type":"post","link":"https:\/\/glocaly.tokyo\/en\/information\/1609\/","title":{"rendered":"Latest Office Building Market\uff5e Impacted by COVID-19, Slight Increase in Vacancy Rates in Central Tokyo"},"content":{"rendered":"

What is the latest office building market like in Tokyo’s business districts? There has been a slight increase in vacancy rates due to the impact of COVID-19. Please take a closer look at the market for Tokyo metropolitan office buildings in the October 2021.<\/strong><\/h4>\n

 <\/p>\n

Impacted by COVID-19, A Consecutive Two-month Increase in Vacancy Rates in Tokyo’s Central Five Wards<\/strong><\/h3>\n

According to MIKI OFFICE REPORT (Miki Company<\/a>), the average vacancy rate in Tokyo’s business districts (the central five wards: Chiyoda, Chuo, Minato, Shinjuku, and Shibuya) was 6.47%<\/strong>, increasing by 0.04 points<\/strong> compared to the previous month.<\/p>\n

The month of October saw movements such as large-scale cancellations of contracts due to downsizing within buildings; however, there were also movements in leasing of medium and small offices due to integrations, resulting in only a slight increase in vacancy rates in Tokyo’s business districts.<\/p>\n

In October, the vacant rate for newly constructed buildings<\/strong> was 14.03%<\/strong>, decreasing by 1.09 points<\/strong> from the previous month. Since there were no new completions of buildings in October and some completions of small-scale contracts were observed, the vacancy rate decreased. The vacancy rate for existing buildings<\/strong> in October was 6.39%<\/strong>, increasing by 0.06 points<\/strong> compared to the previous month.\u00a0<\/strong><\/p>\n

\"\"<\/p>\n

\uff08Source: Miki Company\u3000Tokyo Business Districts\/Latest Market\u3000https:\/\/www.e-miki.com\/market\/tokyo\/<\/a>\uff09<\/p>\n

 <\/p>\n

5% Predicted Oversupply, Consecutive 9-Month Increase<\/strong><\/h3>\n

District variations in office demand led to a slight increase in vacancy rates.<\/p>\n

By district, the vacancy rate in Chiyoda Ward<\/a> was 4.78%, up by 0.17 points and in Shinjuku Ward<\/a> 6.79%, up by 0.66 points from the previous month.<\/p>\n

It is believed that the decrease in office needs from major financial institutions in Chiyoda<\/a> and Shinjuku<\/a> had influenced the vacancy rate. On the other hand, the vacancy rate in Shibuya<\/a> was 5.89%<\/strong>, decreased by 0.86 points, due to the robust demand from IT (information technology) companies.\u00a0<\/p>\n

This decrease rate in vacancy rates is the largest among the five wards, controlling the rise space of the overall vacancy rates in central Tokyo.<\/p>\n

\uff08Source: Miki Company\u3000Tokyo Business Districts\/Latest Market\u3000https:\/\/www.e-miki.com\/market\/tokyo\/<\/a>\uff09<\/p>\n

\"\"<\/p>\n

\uff08Source:\u3000Tokyo Business Districts\/Latest Market\u3000https:\/\/www.e-miki.com\/market\/tokyo\/<\/a>\u3000\uff09<\/p>\n

 <\/p>\n

Consecutive15-Month Decreases in the Average Rent in Tokyo’s Business Districts<\/strong><\/h3>\n

The average rent per 3.3 square meters was 20,804 yen<\/strong>, decreased by 7.27%<\/strong> (1,630 yen<\/strong>) compared to the same month last year, decreased by 0.26%<\/strong> (54 yen<\/strong>) compared to the previous month.<\/p>\n

The average rent for Tokyo’s business districts has been decreasing for 15 consecutive months.<\/p>\n

\"\"<\/p>\n

\uff08Source: Miki Company\u3000Tokyo Business Districts\/Latest Market\u3000https:\/\/www.e-miki.com\/market\/tokyo\/<\/a>\uff09<\/p>\n

 <\/p>\n

Next, we present noteworthy new condominiums strictly selected by GLOCALY.\u00a0\u00a0<\/p>\n

GLOCALY’s Pick-Up Property<\/h3>\n

\u25a0Excellence Building Sakuragaoka Cho (For investment, Completion in progress)<\/a><\/p>\n

This rare and prime location is only a 5-minute walk from Shibuya Station, a terminal station undergoing significant transformation.<\/p>\n

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The property boasts a wide 30-meter frontage in one of the most popular areas.<\/p>\n

Its exceptional visibility makes it ideal for attracting tenants for office and shop uses.<\/p>\n

Its proximity to Shibuya Station<\/a>, a big terminal station, and redevelopment zone make it a highly profitable investment with high asset value.<\/p>\n","protected":false},"excerpt":{"rendered":"

What is the latest office building market like in Tokyo’s business districts? There has been a slight increase in vacancy rates due to the impact of COVID-19. Please take a closer look at the market for Tokyo metropolitan office buildings in the October 2021.   Impacted by COVID-19, A Consecutive Two-month Increase in Vacancy Rates […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[7],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/glocaly.tokyo\/en\/wp-json\/wp\/v2\/posts\/1609"}],"collection":[{"href":"https:\/\/glocaly.tokyo\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/glocaly.tokyo\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/glocaly.tokyo\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/glocaly.tokyo\/en\/wp-json\/wp\/v2\/comments?post=1609"}],"version-history":[{"count":28,"href":"https:\/\/glocaly.tokyo\/en\/wp-json\/wp\/v2\/posts\/1609\/revisions"}],"predecessor-version":[{"id":1663,"href":"https:\/\/glocaly.tokyo\/en\/wp-json\/wp\/v2\/posts\/1609\/revisions\/1663"}],"wp:attachment":[{"href":"https:\/\/glocaly.tokyo\/en\/wp-json\/wp\/v2\/media?parent=1609"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/glocaly.tokyo\/en\/wp-json\/wp\/v2\/categories?post=1609"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/glocaly.tokyo\/en\/wp-json\/wp\/v2\/tags?post=1609"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}