Japan Cap Rate Survey September 2024

CBRE’s most recent quarterly cap rate survey of Tokyo prime assets found that expected NOI yields remained unchanged for the eighth successive quarter for offices in Otemachi (averages). The expected NOI yields for hotels in the five central wards of Tokyo also remained unchanged from Q2 2024, while expected NOI yields for residential properties fell slightly, by 2 bps for single-type in the five central wards of Tokyo and by 3 bps for family-type in the western and southern areas of central Tokyo. Yields also fell by 5 bps for retail facilities in Ginza, with all three categories setting new record lows. On the other hand, expected NOI yields for the logistics sector rose by 6 bps, returning to the levels of a year ago.