Vacancy rate in Greater Tokyo area falls to 0.5%; buildings planned for completion report steady pre-leasing
The vacancy rate for Large Multi-Tenant (LMT) properties in the Greater Tokyo Area stood at 0.5% in Q3 2020, down 0.1 points q-o-q. Effective rents rose by 0.7% q-o-q to JPY 4,420 per tsubo. With vacancies in existing buildings in extremely short supply and most floor space in properties due for completion already pre-leased, rents are rising across the Greater Tokyo area.
The vacancy rate in the Greater Osaka Area LMT was 4.0% in Q3 2020, down 0.8 ppt. Effective rents rose by 1.0% q-o-q to JPY 3,970 per tsubo. Prime locations in inland Osaka Prefecture have no vacancies at all and are driving the overall rent increases.
The vacancy rate in the Greater Nagoya Area LMT stood at 6.7% in Q3 2020, down 0.6 ppt. Although vacancy rates have now fallen for five consecutive quarters, due to take-up in properties completed in 2019, effective rents were flat q-o-q at JPY 3,590 per tsubo.