Colliers: Tokyo Office Market Radar Report 09 October 2018
Low net supply has enabled a market recovery better than we expected over recent years. We no longer find much room left for occupancy gains; in our view, the current demand to supply dynamics remain tight enough to justify modest rental growth over several more quarters.
Low net supply has enabled a market recovery better than we expected over recent years. We no longer find much room left for occupancy gains; in our view, the current demand to supply dynamics remain tight enough to justify modest rental growth over several more quarters.
Since 2013, net absorption averaging 2.0% per annum has tracked above net new supply averaging 0.8%, reducing the vacancy to cyclical lows. We highlight the current market status has some room for upward price movements as the vacancy rate hits cyclical lows. Past weak price recovery since 2012 should also help extend the ongoing slow yet stable market recovery.
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