Japan Cap Rate Survey March 2024

CBRE’s most recent quarterly Cap Rate Survey found that prime asset expected yields in Tokyo recorded a rise of 1 bps from Q4 2023 for logistics facilities (LMT, Tokyo Bay area) but remained unchanged q-o-q for all other sectors (averages). For offices (Otemachi) and retail (Ginza Chuo-dori), this marked the sixth and fourth consecutive quarters, respectively, in which expected yields remained unchanged. In terms of offices in regional cities, expected yields rose slightly q-o-q in Fukuoka (+5 bps) and Nagoya (+3 bps), fell slightly in Sendai (-3 bps), and were unchanged in all other cities.