Tokyo office space demand strong
The average vacancy rate in Tokyo’s central business district has fallen for three consecutive months according to a report from office agency Miki Shoji .
The Japanese capital now holds the lowest vacancy rate for past 10 months, despite the completion of construction projects in the area.
The report found the vacancy rate fell to 8.74% at the end of October, down from 8.9% in September with consecutive decreases in the vacancy rate for two months prior.
The report went on to state similar findings in Osaka and Nagoya with smaller vacancy rates reported over a one month span.
Forex reported on the findings, saying that the average office rent per 3.3 sq m in central Tokyo correlates with the office space vacancy rates reported.
Miki Shoji also reported that newly available office space totalling 600,000 sq m to 1m sq m was expected to come onto the market in 2013, down from 1.65m sq m in 2012.
Slowed expansion of the Tokyo commercial property market was seen as a positive factor to initiate the decline in Tokyo’s office space vacancy rate.
Japanese analysts will be buoyed by news from the office sector following disappointing returns from the manufacturing and finance sectors, which saw an economic contraction on 0.9% in Q3.