Vacancy Rate of Tokyo Building – slight rise in A grade
On April 18th CBRE published the trends of the office building market in 13 cities across the country for the first quarter in 2018.
In the 23 wards of Tokyo, the vacancy rate of all grade was 1.4% which fell 0.1 points from the previous term. The vacancy of new buildings was resolved against a background of strong corporate performance.
The vacancy of grade A was 2.3% (+0.5 points) and slightly increasing. The percentage of the tenants in the building which is expected to complete in 2018 is about 80% and at a good rate and the assumed contract rent also increased 0.1% to 36,500 yen. Many of the tenants are relocating from the existing building, and there will be newly buildings coming so we foresaw the rent of grade A would fall 0.4% in a year.
In Osaka, the vacancy of all grade was 1.9% (-0.6%), and it was less than 2% for the first time since the start of the survey. While in high demand, there is a movement to secure space for the tenants who are eager to expand their business, even though in the area and the building which doesn't meet their needs.
The vacancy rate of Grade A was 0.2% (-0.1%) and updated the lowest number since the study began. The assumed contract rent was 22,650 (+3.2%) and this more than 3% climb rate in the first quarter happened as far back as the second quarter in 2005.
In Nagoya, the vacancy rate of all grade was 2.0% (-0.6%) and reached record lows. The rate of Grade A was 1.7% (-0.6%) because there were many store relocation and expansion of a building around Nagoya station. The assumed contract rent was 25,100 yen (+2.2%) The rent offer is increasing because operation rates are rising and we anticipated the 1.2% increase of rent in a year.