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Many business owners (private sector, public sector and public listed) have traditionally owned their real estate. These typically include factory operations coupled with offices and warehouses. While, in some cases, the real estate may have become non-core, in other cases such real estate is essential for the business operations. 

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%.

Arising from the need to social distance to mitigate the spread of COVID-19, the question that arises in the minds of many will be the state of the co-working industry in a possible new epoch. 

China is the world’s second-largest economy and its second-largest consumer market (13.1% in 2018) having overtaken Japan in 2005, as well as being one of the fastest-growing large markets. International retailers have been placing increased importance on the market with some making China its regional headquarters. Meanwhile...