Japan Cap Rate Survey June 2024

CBRE’s most recent quarterly cap rate survey found that expected yields for prime assets in Tokyo (averages) fell from the previous quarter by 5bps for hotels (management contract, Tokyo 5 wards), and by 7bps for residential properties (family-type, Tokyo south/ east). A decline of 2bps was recorded for logistics facilities (multi-tenant, Tokyo Bay area), while expected yields for all other asset types were unchanged. For offices (Otemachi) and retail facilities (Ginza Chuo-dori), this marks the seventh and fifth consecutive quarters, respectively, in which expected yields have remained stable. For offices in the six major regional cities, no areas saw expected yields increase, with figures falling in four cities and remaining unchanged in the other two.