Tokyo Office Leasing – Q1/2020 04 May 2020
The Grade A and B office markets both saw impressive rental growth over the year. Nevertheless, a COVID-19-induced market slowdown is likely to materialise during late-2020.
• Vacancy rates remain extremely low in the central five wards (C5W), and rents have picked up once more. That said, momentum is expected to peter out as the market grapples with the impact of the COVID-19 pandemic.
• Average rents in the C5W Grade A office market grew 1.0% quarter-on-quarter (QoQ) and 7.1% year-on-year (YoY) to JPY37,759 per tsubo1 per month.
• The average Grade A office vacancy rate in the C5W was steady over the quarter and year, holding at around 0.3% as of Q1/2020.
• Average rents for large-scale Grade B office space rose to JPY28,558 per tsubo per month, growing by 1.3% QoQ and 6.5% YoY.
• Like its Grade A counterpart, the average large-scale Grade B office vacancy rate saw minimal change this period, standing at 0.3%.
