The office vacancy rate for existing buildings in central Tokyo’s five business districts reached a 33-month low in October. According to office brokerage Miki Shoji, the vacancy rate was 5.36%, down 0.71 points from last year and the 16th month in a row to record a year-on-year decrease. During the month, around 4,000 tsubo (13,220 sqm or 142,000 sq.ft) of space was absorbed thanks to some large-scale leases.
The vacancy rate peaked at 6.39% in October 2021. It had previously reached a record low of 1.42% in February 2020 before rising sharply as the pandemic took hold.
Chiyoda, which includes the Marunouchi and Otemachi districts, had a vacancy rate of 3.30% in October, the lowest level seen in 35 months and down 1.58 points from last year. Shinjuku’s rate dropped to a 33-month low of 5.07%.
The average monthly rent was 19,741 Yen per tsubo (5,973 Yen/sqm), down 1.85% from last year. Although rents continue to decline, the rate has slowed considerably when compared to 2021 and 2022. In Shibuya, the rent was 22,045 Yen/tsubo, up 2.89% from last year. Shibuya’s rent is still 13.6% below its peak seen in April 2020 but has recovered by 3.2% from the bottom seen in January of this year.
