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Home » Colliers International Japan Co., Ltd. Tokyo Office Market Report October-December 2023 Tenant offers for newly built properties to be completed in 2023 are better than initially expected. Vacancy rate is decreasing, supported by steady demand

Colliers International Japan Co., Ltd. Tokyo Office Market Report October-December 2023 Tenant offers for newly built properties to be completed in 2023 are better than initially expected. Vacancy rate is decreasing, supported by steady demand

Colliers International Japan Co., Ltd.
Tokyo Office Market Report October-December 2023 Tenant offers for newly built properties to be completed in 2023 are better than initially expected. Vacancy rate is decreasing, supported by steady demand
Demand follows the increased supply, and the market remains strong ……
Colliers International Japan Co., Ltd. (Representative: Yukihiro Ogasawara, Headquarters: Chiyoda-ku, Tokyo, NASDAQ and TSX: CIGI, hereinafter referred to as Colliers Japan), a major comprehensive real estate consulting service and investment management company, today announced the opening of its Tokyo office. Market report | 4th quarter of 2023 (October-December period) Grade A offices in Tokyo’s 5 major wards has been announced. This report was compiled by Colliers Japan on the rental office market conditions and future outlook for Great A office buildings*1 in Tokyo’s five major wards (Chiyoda, Chuo, Minato, Shinjuku, and Shibuya). This is an analysis based on data.
In the rental office market in Tokyo’s five major wards, new supply decreased compared to the previous period, and net absorption*2 exceeded supply. Offers for new properties were relatively favorable, vacancy rates declined compared to the previous period supported by solid demand, and rent levels rose. For the full year of 2023, although there were concerns about the impact of large-scale supply on the market, as a result of steady progress in making offers for new properties, the vacancy rate decreased and rent levels rose slightly compared to the previous year. .
Vacancy rate and rent trends: Supported by steady demand, the vacancy rate has fallen and rents have increased slightly. In Tokyo’s five major wards, new supply of Grade A offices totaled over 30,000 tsubo in the October-December period. On the other hand, demand exceeded supply, with a net absorption of approximately 50,000 tsubo. In the Shibuya area in particular, “Shibuya Sakura Stage SHIBUYA Tower” was completed with a high offer rate, giving an impression of the solidity of demand in the Shibuya area. Additionally, Gotanda JP Building has been completed with a favorable offer, and it appears that the surrounding area is being reevaluated.
Demand is driven by relocation aimed at creating office spaces suitable for new work styles. There were concerns that vacancies would increase in 2023 due to the large amount of new supply, but vacancies in newly built properties were steadily eliminated even after completion, and the vacancy rate decreased compared to the previous year.
The new supply in 2023 will total 200,000 tsubo, making it the second largest supply in the past five years after 2020. The penetration of new work styles has stimulated demand for relocation, and demand has exceeded supply. In contrast, supply in 2024 is expected to decline to just under 100,000 tsubo for the full year. Demand remains strong and vacancy rates are expected to continue to decline. As vacancies progress, rent levels, which had been stagnant, are expected to rise. However, new supply of around 200,000 tsubo is expected to occur again in 2025, which is expected to cause the vacancy rate to rise again, so expectations for an increase in rent levels are likely to weaken.
[Image 1: https://prtimes.jp/i/46143/77/resize/d46143-77-c6d26be58d5b1e1d4d58-0.jpg&s3=46143-77-90009dfa65e68203efef473ef14dfd7c-1222×989.jpg]
[Image 4: https://prtimes.jp/i/46143/77/resize/d46143-77-52c5b9d119a4bef16e1d-0.jpg&s3=46143-77-8d02f38daa925af9bea608236c3c06ef-1224×1307.jpg] Area trends: Vacancy rates are on the decline across the five major wards. In the Marunouchi/Otemachi area, vacancy rates have fallen and rents, which had been on a downward trend, have started to rise. In the Nihonbashi, Yaesu, and Kyobashi areas, where redevelopment is progressing, vacancy rates are decreasing and rents are continuing to rise.
In the Shibuya area, the number of offers for properties completed this period was favorable, and the vacancy rate decreased. Demand, especially from tech companies, is expected to support the market. In other areas, vacancy rates remained flat and rent levels changed only slightly.
[Image 3: https://prtimes.jp/i/46143/77/resize/d46143-77-5e561a5261fc73593897-0.jpg&s3=46143-77-3889609c90673d28b780d59cc894016c-1227×1051.jpg]
[Image 4: https://prtimes.jp/i/46143/77/resize/d46143-77-52c5b9d119a4bef16e1d-0.jpg&s3=46143-77-8d02f38daa925af9bea608236c3c06ef-1224×1307.jpg] You can download the “Tokyo Office Market Report | 2023 Fourth Quarter (October-December Period) Grade A Offices in Tokyo’s 5 Major Wards” from the link below.
https://www.colliers.com/ja-jp/research/tokyo-office-market-q4-2023 *1 Great A Office: Selected based on our own criteria from office buildings that are primarily rented and have a standard floor area of ​​approximately 300 tsubo or more. *2 Net absorption (absorption demand): An indicator that calculates the total vacant room area occupied by tenants and estimates the increase in demand area. Calculated using ].
About Colliers
Colliers is one of the world’s leading comprehensive real estate professional services and investment management companies, listed on NASDAQ and the Toronto Stock Exchange. With operations in 66 countries, our 19,000 enterprise-minded employees provide expert advisory services to help our clients, tenants, owners, and investors maximize the value of their real estate. Masu. Additionally, our experienced management team, which owns our stock, has provided shareholders with an annual return of approximately 20% for over 28 years. The company has annual sales of $4.5 billion and assets under management of $98 billion.
About Colliers Japan
Colliers Japan has over 100 professionals based in Tokyo and Osaka, and provides office leasing, industrial leasing, leasing management, capital markets, investment services, and project management for domestic and overseas investors, owners, and tenants. , provides advisory services such as design-build, workplace consulting, and real estate appraisal.
For the latest information on Colliers, please visit our website. https://www.colliers.com/ja-jp/about
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