TOKYO
JAPAN Office Investment volume 2013 (mio)
Prime rent
¥ 1,618,929
Stock m² Take-up m²
Office Investment volume Q1 2014 (mio)
¥ 746,837
¥ 32,268 / tsubo / month 41,000,000 6,380,000
Vacancy rate
3.7%
Prime yield
3.6%
LEASING MARKET Rents in the Grade A office market in 1Q14 registered growth for the eighth consecutive quarter. Since bottoming in 2Q12, rents have continued to grow, albeit moderately, as vacancy has decreased due to limited new supply following the global financial crisis and demand driven by a “flight to quality” following a natural disaster in 2011. The improvement in economic sentiment and conditions as a result of “Abenomics” supported the growth trend, and rental growth in 2013 reached 2.4% y-o-y. Since the beginning of 2014, growth has accelerated, as evidenced by the latest figures for May, with rental growth of 1.2% m-o-m and the vacancy rate decreasing to less than 3%.
“In the leasing market, demand backed by solid economic growth and a tightening labour market, as reflected in the 3.6% unemployment rate in 1Q14, coupled with the high forward commitment rate of new supply of more than 90% for 2014, will place further downward pressure on vacancy and accelerate rental growth.” Akihiko Mizuno, Head of Capital Markets.
16 / 28
www.jll.be