Tokyo Grade A Rents Decline for First Time Since August 2013

February 9, 2017

Tokyo, February 9, 2017 - CBRE today released its preliminary January 2017 data on office vacancy rates and average assumed achievable rents in Japan’s three major cities: Tokyo, Osaka, and Nagoya.

In January 2017, the Grade A office vacancy rate in Tokyo was up 1.5 points month-over-month (m-o-m) to 4.3%. Meanwhile, the Osaka Grade A vacancy rate was down 0.9 points to 1.9%, and the Nagoya Grade A vacancy rate was down 1.9 points to 2.1%. Assumed Achievable Rents for Tokyo Grade A buildings were down 0.1% m-o-m, the first time rents have declined since August 2013. Osaka Grade A rents were up 0.5% m-o-m and Nagoya Grade A rents were flat m-o-m.

With regard to All-Grade vacancy rates, Tokyo's 23 wards were up 0.4points m-o-m to 2.7%, Osaka was down 0.7points m-o-m at 3.2%, and Nagoya was down 0.8 points m-o-m to 3.3%. For further details on each city, please refer to the following tables and charts.

■ Grade A Vacancy Rate

Source: CBRE

■Grade A Assumed Achievable Rent

Source: CBRE

■Grade A-Minus Vacancy Rate

Source: CBRE

■Grade B Vacancy Rate

Source: CBRE

■All-Grade Vacancy Rate

Source: CBRE

■Tokyo

Source: CBRE

■Osaka

Source: CBRE

■Nagoya

Source: CBRE

Survey Outline

□ Vacancy Rate	Vacancy is based on the data that was available at the time of compiling the survey
□ Assumed Achievable Rent	Assumed achievable rent is based on sample surveys of the applicable buildings (inclusive of service charges; not taking into account incentives such as free rent)
□ Definitions of Grades (Tokyo/Osaka/Nagoya)	■ Grade A As a general rule, buildings located in regions () with a high concentration of office buildings that fulfill the following conditions: typical floor plate of 350 tsubo or more (500 tsubo or more in Tokyo), net floor area of 6,500 tsubo or more, total floor space of 10,000 tsubo or more, and age of less than 11 years () Regions with a high concentration of office buildings: Tokyo – centered on the central 5 wards; Osaka – centered on Kita, Chuo and Yodogawa wards; Nagoya – centered on Nakamura, Naka, Higashi and Nishi wards ■ Grade A – Minus (Tokyo only) As a general rule, office buildings located in regions with a high concentration of office buildings that fulfill the following conditions: typical floor plate of 250 tsubo or more, net floor area of 4,500 tsubo or more, total floor space of 7,000 tsubo or more, and structure based on new earthquake resistance standards ■ Grade B As a general rule, office buildings located in regions with a high concentration of office buildings that fulfill the following conditions: typical floor plate of 2,000 tsubo or more (in Tokyo, typical floor plate of 200 tsubo or more and total floor space of less than 7,000 tsubo), and structure based on new earthquake resistance standards ■ All-Grade Rental office buildings within the office area comprising 13 cities nationwide set independently by CBRE, as a general rule with a total floor space of 1,000 tsubo or more and structure based on the new earthquake resistance standards

CBRE’s next press release on the office market is scheduled for March 8, 2017.

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About CBRE Group, Inc.

CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.co.jp

Official Twitter account for Japan: @cbrejapan

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Neither CBRE nor its affiliated companies make any warranties or claims on the implied accuracy of the information contained herein.

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Tokyo Grade A Rents Decline for First Time Since August 2013

■ Grade A Vacancy Rate​

■Grade A Assumed Achievable Rent

■Grade A-Minus Vacancy Rate

■Grade B Vacancy Rate

■All-Grade Vacancy Rate

■Tokyo

■Osak​a

■Nagoya

Survey Outline

Download PDF

About CBRE Group, Inc.

Disclaimer

Media Contacts

■ Grade A Vacancy Rate

■Osaka