Japan Office, Q1 2017
Grade A vacancy rises
above 4% in Tokyo, drops
below 2% in Osaka
GDP Growth Q1
+1.4% (*Forecast) Y-o-Y
BOJ Tankan DI Q1
+10pts (Large Enterprise Manufacturing)
Tokyo Grade A Rent Q1
±0.0% Q-o-Q
Tokyo Grade A Vacancy Rate Q1
+1.4% Q-o-Q
*JCER Forecast
Figure 1 : Grade A Vacancy Rate
Figure 2 : Grade A Average Assumed Achievable Rent
Tokyo
20%
Osaka
Nagoya
▶Forecast
(JPY/tsubo)
40,000
Tokyo
Osaka
Nagoya
▶Forecast
18%
35,000
16%
14%
30,000
12%
10%
25,000
8%
20,000
6%
4%
15,000
Source: CBRE, Q1 2017
・ Tokyo Grade A vacancy rate was up 4.2%
q-o-q, due to new buildings which were
completed with vacant space.
・ Osaka Grade A vacancy rate, on the other
hand, dropped to 1.1%, the lowest since Q1
2008. The completion of a new building with
close to full occupancy has prompted the
tenants to speed up their search for space.
・ Nagoya Grade A vacancy rate rose for the third
consecutive quarter to 5.2%, due to vacant
space in a building completed during the
quarter. Demand remains robust, however, with
net absorption of 25,000 tsubo.
・ Other regional cities all recorded drop in
vacancy. Of particular note, Sapporo, Kyoto,
and Fukuoka recorded their respective historical
lows. In Sendai, vacancy rate dropped below
6% for the first time in 10 years.
Q1 2017 CBRE Research
10,000
Q1 2012
Q2 2012
Q3 2012
Q4 2012
Q1 2013
Q2 2013
Q3 2013
Q4 2013
Q1 2014
Q2 2014
Q3 2014
Q4 2014
Q1 2015
Q2 2015
Q3 2015
Q4 2015
Q1 2016
Q2 2016
Q3 2016
Q4 2016
Q1 2017
Q2 2017
Q3 2017
Q4 2017
Q1 2018
0%
Q1 2012
Q2 2012
Q3 2012
Q4 2012
Q1 2013
Q2 2013
Q3 2013
Q4 2013
Q1 2014
Q2 2014
Q3 2014
Q4 2014
Q1 2015
Q2 2015
Q3 2015
Q4 2015
Q1 2016
Q2 2016
Q3 2016
Q4 2016
Q1 2017
Q2 2017
Q3 2017
Q4 2017
Q1 2018
2%
Source: CBRE, Q1 2017
March 2017 BoJ Tankan survey showed that
corporate sentiment continued to improve,
although they retained their cautious view on
outlook. This is also apparent in the Tokyo office
market, where progress in lease-ups in new Grade
A buildings has been slow in recent quarters.
That said, demand for prime locations and
buildings basically remains solid, with corporates
regarding them to be increasingly necessary in
attracting and retaining talents amidst
tightening labor market. CBRE expects Tokyo
Grade A rents to peak in 2H 2017, before shifting
to a moderate declining trend. Meanwhile, office
markets in regional cities are likely to remain
tight, on the back of limited supply. Osaka was of
particular note this quarter, where the Grade A
vacancy dropped below 2%, and rise in rents is
expected to pick up pace.
©2017 CBRE, Inc. | 1
The Tokyo All-Grade vacancy rate increased by
0.1 percentage points (ppt) q-o-q, the first rise in
two quarters, due to several new Grade A
buildings which came on line with some space
unlet. The Grade A vacancy rate increased by 1.4
ppt q-o-q, the third consecutive quarterly rise.
Meanwhile, vacancy rate for both the Grade
A-Minus and the Grade B declined q-o-q. In fact,
this quarter marked the first time the Grade
A-Minus vacancy rate fell below 2% since 2008.
Grade A offices completed in H2 2016 have been
making slow progress in lease-ups, and some
owners are offering extended rent-free periods or
lower asking rents. As such, although rents rose
in some buildings where the rents were below
market average, Grade A assumed achievable
rents this quarter were unchanged q-o-q at JPY
35,950.
At least 150,000 tsubo of Grade A new supply is
expected to be completed every year between
2018 and 2021. Some of the new buildings
scheduled to be completed in 2018 are expected
to be fully let. However, there are concerns about
vacancy in existing properties whose tenants are
relocating to new buildings. Consequently, Grade
A vacancy rate is likely to go on rising, and we
expect Grade A rents to peak in Q3 2017 before
entering a period of gradual decline.
Companies remain cautious on actual relocation,
not only on the back of uncertainty in outlook for
the global economy, but also due to the large
volume of new supply scheduled in 2018 and
beyond. However, as labor shortage becomes
more acute, demand remains high for prime
locations and/or high grade building in order to
attract and retain talents. By the same token,
more companies are turning to workplace
strategy to appeal to their employees as well as to
improve their productivity and efficiency. These
trends suggest that Grade A buildings should
continue to attract demand over the mid- to
long-term.
Q1 2017 CBRE Research
Tokyo
Vacancy Rate
q-o-q
Average Assumed
Achievable Rent
(JPY/tsubo)
q-o-q
Grade A
4.2%
+1.4ppt
35,950
±0.0%
Grade A-Minus
1.8%
−0.2ppt
24,650
+1.0%
Grade B
2.1%
−0.4ppt
20,900
+0.5%
All-Grade
2.4%
+0.1ppt
Source: CBRE, Q1 2017
Figure 4 : Vacancy Rate
Grade A
12%
Grade A-Minus
Grade B
All Grade
10%
8%
6%
4%
2%
0%
Q1 2012
Q2 2012
Q3 2012
Q4 2012
Q1 2013
Q2 2013
Q3 2013
Q4 2013
Q1 2014
Q2 2014
Q3 2014
Q4 2014
Q1 2015
Q2 2015
Q3 2015
Q4 2015
Q1 2016
Q2 2016
Q3 2016
Q4 2016
Q1 2017
ALL- GRADE VACANCY RATE RISES AGAIN
Figure 3 : Tokyo Market Summary
Source: CBRE, Q1 2017
Figure 5 : Average Assumed Achievable Rent
(JPY/tsubo)
40,000
Grade A
Grade A-Minus
Grade B
35,000
30,000
25,000
20,000
15,000
10,000
Q1 2012
Q2 2012
Q3 2012
Q4 2012
Q1 2013
Q2 2013
Q3 2013
Q4 2013
Q1 2014
Q2 2014
Q3 2014
Q4 2014
Q1 2015
Q2 2015
Q3 2015
Q4 2015
Q1 2016
Q2 2016
Q3 2016
Q4 2016
Q1 2017
TOKYO
Source: CBRE, Q1 2017
©2017 CBRE, Inc. | 2
ALL- GRADE VACANCY RATE HITS RECORD LOW
The All-Grade vacancy rate declined by 0.7 ppt
q-o-q, falling to its lowest since the survey for
Osaka began in 1993. The Grade A vacancy rate
fell to 1.1%, while the Grade B vacancy rate fell to
2.9%, both marking the lowest since Q1 2008.
This quarter saw the completion of Nakanoshima
Festival Tower West, a Grade A building which
came on line at almost full occupancy. New
supply over the next three years will be extremely
low, equal to only 1.5% of the existing stock. The
market is expected to tighten further in the
coming quarters, and the tenants are increasingly
concerned about being unable to find a space.
Assumed achievable rents rose by 2.7% q-o-q for
Grade A and by 1.7% for Grade B. The q-o-q rise
in Grade A rents was the highest among the three
major cities, reflecting the fact that Osaka will
have the least new supply among the three cities,
in terms of % of existing stock.
Figure 6 : Osaka Market Summary
Osaka
Vacancy Rate
q-o-q
Average Assumed
Achievable Rent
(JPY/tsubo)
q-o-q
Grade A
1.1%
−1.7ppt
20,900
+2.7%
Grade B
2.9%
−0.3ppt
11,850
+1.7%
All-Grade
3.2%
−0.7ppt
Source: CBRE, Q1 2017
Figure 7 : Vacancy Rate
Grade A
20%
Grade B
All Grade
15%
10%
5%
0%
Q1 2012
Q2 2012
Q3 2012
Q4 2012
Q1 2013
Q2 2013
Q3 2013
Q4 2013
Q1 2014
Q2 2014
Q3 2014
Q4 2014
Q1 2015
Q2 2015
Q3 2015
Q4 2015
Q1 2016
Q2 2016
Q3 2016
Q4 2016
Q1 2017
OSAKA
Source: CBRE, Q1 2017
NAGOYA
VACANCY RATE NOW LOWEST IN 16 YEARS
The All-Grade vacancy rate dropped below 4% for
the first time in nearly 16 years. The completion
of two Grade A buildings in the Nagoya Station
area drove relocations by large tenants, including
an IT company and a financial institution.
Figure 8 : Nagoya Market Summary
Nagoya
Vacancy Rate
q-o-q
Average Assumed
Achievable Rent
(JPY/tsubo)
q-o-q
Grade A
5.2%
+1.2ppt
23,800
+1.3%
Grade B
2.9%
−0.3ppt
12,300
+1.2%
All-Grade
3.9%
−0.2ppt
Source: CBRE, Q1 2017
Figure 9 : Vacancy Rate
Companies are opening new offices or upgrading
their locations in order to enhance recruitments
and retentions. That said, one of the two new
buildings had some space still available, which
pushed up the Grade A vacancy rate for the third
consecutive quarter.
16%
Grade A
Grade B
All Grade
14%
12%
10%
8%
Q1 2017 CBRE Research
6%
4%
2%
0%
Q1 2012
Q2 2012
Q3 2012
Q4 2012
Q1 2013
Q2 2013
Q3 2013
Q4 2013
Q1 2014
Q2 2014
Q3 2014
Q4 2014
Q1 2015
Q2 2015
Q3 2015
Q4 2015
Q1 2016
Q2 2016
Q3 2016
Q4 2016
Q1 2017
The coming quarters may see some Grade B
space come onto the market, as their tenants
have moved into the new buildings. However,
they are unlikely to take too long to let. Demand
is likely to come from companies looking to
consolidate, relocate from the suburbs, or having
to move to make way for rebuilding.
Source: CBRE, Q1 2017
©2017 CBRE, Inc. | 3
SAPPORO
SENDAI
NEWLY COMPLETED BUILDINGS FULLY LET AS
VACANCY RATE BELOW 6% FOR FIRST TIME
MARKET REMAINS TIGHT
SINCE Q3 2007
Figure 10 : Sapporo All-Grade
Figure 11 : Sendai All-Grade
Vacancy Rate
q-o-q
Average Assumed
Achievable Rent
0.7%
−0.1ppt
12,090
(JPY/tsubo)
q-o-q
Vacancy Rate
q-o-q
Average Assumed
Achievable Rent
+2.2%
5.5%
−0.6ppt
9,630
(JPY/tsubo)
q-o-q
+0.3%
Source: CBRE, Q1 2017
Source: CBRE, Q1 2017
The vacancy rate declined by 0.1 ppt q-o-q to
0.7% in Q1 2017. One large-scale building
completed this quarter was almost fully let
despite it commanding rents well above
prevailing market levels. All of the spaces vacated
by tenants moving to the new building have also
been re-let. With the demand robust and no
space available in the city centre, some occupiers
with plans for expansion are having to widen
their scope to include surrounding areas.
The vacancy rate in Sendai dropped below 6% for
the first time in nearly ten years. Notable deals
included IT companies opening new offices, as
well as a company moving to city central at the
same time selling its obsolete suburban building.
Most of these deals were closed even before the
owners began marketing the spaces. A new
building due for Q2 2017 completion is also
expected to come on line fully let.
Assumed achievable rents exceeded JPY 12,000
for the first time since Q4 2003. Vacancy is set to
remain low, and the rent is likely to rise further.
Rents continued to rise, led by recently built
buildings where occupancy has improved. There
is less scope for tenants to negotiate rents for
space even for medium-sized buildings.
SAITAMA
YOKOHAMA
MARKET TIGHTENS FURTHER AS VACANCY RATE
SEVERAL COMPANIES MOVE TO LARGER OFFICES
FALLS BELOW 1%
AROUND YOKOHAMA STATION
Figure 12 : Saitama All-Grade
Figure 13 : Yokohama All-Grade
Vacancy Rate
q-o-q
Average Assumed
Achievable Rent
0.6%
−0.8ppt
15,980
(JPY/tsubo)
q-o-q
Vacancy Rate
q-o-q
Average Assumed
Achievable Rent
q-o-q
+0.6%
3.0%
−0.8ppt
14,330
+1.5%
(JPY/tsubo)
Source: CBRE, Q1 2017
Source: CBRE, Q1 2017
The vacancy rate declined 0.8 ppt q-o-q to 0.6%,
the first time it dropped below 1% since 2000. The
period continued to see companies opening new
offices, and/or upgrading their locations to the
Omiya Station area. Insurance companies were
especially active this quarter. The market
tightened further, with spaces being filled even
before they are put on the market. Tenants who
could not secure larger space are coping by
changing their office layouts.
The vacancy rate declined 0.8 ppt q-o-q, driven by
professional services and financial institutions
seeking larger space. An especially large amount
of space was let in the Yokohama Station area,
where the vacancy rate dropped 1.1 ppt q-o-q to
2.2%, falling below 3% for the first time in 10
years. Minato Mirai area saw a large-scale
building come on line fully let.
Assumed achievable rents rose 0.6% q-o-q. With
little availability, owners are increasingly bullish
on rents. The market is likely to remain tight as no
supply is scheduled for the next four years.
Q1 2017 CBRE Research
Assumed achievable rents in Q1 2017 rose by
1.2% q-o-q to JPY 14,290 per tsubo driven by
mid-sized buildings. There is strong demand
from customer-facing tenants, e.g. in the service
sector, and rents are likely to continue rising
especially in the Yokohama Station area.
©2017 CBRE, Inc. | 4
KANAZAWA
KYOTO
SOLID DEMAND PUSHES UP RENTS
DEMAND REMAINS FIRM DESPITE LACK OF
AVAILABILITY
Figure 14 : Kanazawa All-Grade
Figure 15 : Kyoto All-Grade
Vacancy Rate
q-o-q
Average Assumed
Achievable Rent
8.3%
±0.0ppt
9,810
(JPY/tsubo)
q-o-q
Vacancy Rate
q-o-q
Average Assumed
Achievable Rent
+1.0%
1.4%
−0.7ppt
12,140
(JPY/tsubo)
Source: CBRE, Q1 2017
q-o-q
+2.4%
Source: CBRE, Q1 2017
The vacancy rate was unchanged q-o-q. The period
did see solid demand from companies wanting to
relocate from the suburbs to the Kanazawa Station
area, but there are few large units available in the
area. With small tenants looking to open new
offices, and companies planning to relocate from
obsolete suburban buildings, demand for office
space is likely to remain firm in the coming
quarters.
The vacancy rate hit a record low for the fifth
consecutive quarter, falling to 1.4%, on the back
of tenants’ continuing strong appetite for space.
Even several buildings in slightly inconvenient
locations reached full occupancy, with tenants
opening new offices or moving to make way for
rebuilding. Given scarce availability, some
companies had to re-examine their plans for
moving or new openings.
Assumed achievable rents rose by 1.0% q-o-q. Lack
of large spaces around Kanazawa Station has
prompted more owners to raise asking rents also in
other areas and for medium-sized buildings.
Assumed achievable rents rose 2.4% q-o-q to JPY
12,140, marking the first time since Q3 2008 to
exceed the JPY 12,000 mark. More tenants,
prioritizing space securement, are agreeing to
higher rents offered by the owners.
KOBE
HIROSHIMA
DEMAND SPREADS BEYOND SANNOMIYA
VACANCY RATE DECLINES DESPITE TENANTS’
STATION AREA
CAUTIOUS APPROACH
Figure 16 : Kobe All-Grade
Figure 17 : Hiroshima All-Grade
Vacancy Rate
q-o-q
Average Assumed
Achievable Rent
5.6%
−0.1ppt
10,780
(JPY/tsubo)
q-o-q
Vacancy Rate
q-o-q
Average Assumed
Achievable Rent
q-o-q
±0.0%
3.0%
−0.3ppt
10,440
+0.7%
Source: CBRE, Q1 2017
The vacancy rate declined by 0.1 ppt q-o-q to 5.6%
in Q1 2017. As in the previous quarter, occupier
activity was limited due to there being no large
units available around Sannomiya Station, where
tenants are finding it increasingly difficult to find
space. As a result, tenants are now expanding their
scope of search to include surrounding areas.
Assumed achievable rents were unchanged q-o-q.
Although rents rose around Sannomiya Station,
this was offset by drop in rents for obsolete
buildings or those in particularly inconvenient
locations. However, as the demand spreads to
wider area, overall rents could begin to rise again.
Q1 2017 CBRE Research
(JPY/tsubo)
Source: CBRE, Q1 2017
Although the vacancy rate declined this quarter,
occupier activity was limited due to lack of space
sufficient to meet demand. An increasing
number of tenants therefore adopted a wait-andsee approach ahead of the completion of a new
building this autumn. The quarter also saw a
number of take-ups in relatively expensive or
poorly located buildings, simply because they
had large units available.
Assumed achievable rents rose 0.7% q-o-q, a
slow-down vis-a-vis the 3.6% y-o-y rise for 2016 as
a whole. It appears that rents for aged buildings,
which account for a large portion of Hiroshima
office market, are more or less at their peak.
©2017 CBRE, Inc. | 5
TAKAMATSU
FUKUOKA
VACANCY FALLS BUT RENTAL GROWTH REMAINS
VACANCY RATE FALLS TO RECORD LOW
LIMITED
Figure 18 : Takamatsu All-Grade
Figure 19 : Fukuoka All-Grade
Vacancy Rate
q-o-q
Average Assumed
Achievable Rent
9.6%
−0.2ppt
8,790
(JPY/tsubo)
q-o-q
Vacancy Rate
q-o-q
Average Assumed
Achievable Rent
+0.2%
1.0%
−0.5ppt
12,270
(JPY/tsubo)
Source: CBRE, Q1 2017
Despite the decline in the vacancy rate, activities
remain mixed. On a positive note, a heavy
machinery company was seen relocating for BCP
purposes, and new offices were opened by an
industrial machinery company and a recruitment
agency. On the other hand, several companies
withdrew from Shikoku as a whole, including
Takamatsu, to consolidate their offices in Osaka or
Okayama.
Assumed achievable rents rose by just 0.2% q-o-q.
With the vacancy still close to 10%, it is difficult
even for relatively high grade buildings to raise
rents. Most tenants’ sentiment is a long way from
anticipating any rent rise.
q-o-q
+2.8%
Source: CBRE, Q1 2017
The vacancy rate declined by 0.5 ppt q-o-q to
1.0%, marking the eighth consecutive quarterly
low since the survey for Fukuoka began in 2001.
The period saw several large units let to tenants
who were forced to move because of rebuilding
plans, while a number of buildings achieved full
occupancy as small units were let despite their
location, size or specifications. The acute
shortage of space is likely to persist in the long
term.
Assumed achievable rents rose by 2.8% q-o-q.
Rents have now risen by nearly 3% for two
consecutive quarters. Current pace of rental
increases is set to continue as the market is
expected to remain tight.
BUILDING GRADE DEFINITION
All-Grade
Grade A
Grade A-Minus
Location
Tokyo: Central 5 Wards*
Osaka, Nagoya: Major wards
Tokyo 23 Wards
Size
GFA: 10,000 tsubo or more
NLA: 6,500 tsubo or more
Typical floor plate:
Greater than 500 tsubo**
Age
Less than 11 years
Grade B
Tokyo 23 Wards
GFA: 7,000 tsubo or more
GFA: 2,000-7,000 tsubo
NLA: 4,500 tsubo or more
Typical floor plate: Greater than Typical floor plate:
Greater than 200 tsubo
250 tsubo (except Grade A)
Osaka
Nagoya
Office area in 13 cities
nationwide set by CBRE
GFA: 2,000 tsubo or more
(except Grade A)
GFA: 1,000 tsubo or more
Buildings satisfying the 1981 anti-seismic standards
*Central 5 Wards: Chiyoda Ward, Chuo Ward, Minato Ward, Shinjuku Ward, Shibuya Ward　**350 tsubo for Osaka and Nagoya
Q1 2017 CBRE Research
©2017 CBRE, Inc. | 6
Figure 20 : Market Summary
Vacancy Rate
Assumed Achievable Rent (JPY/tsubo)
Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2016
Tokyo
Osaka
Grade A
Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017
All
2.9%
1.9%
2.7%
2.8%
4.2%
34,900 35,400 35,750 35,950 35,950
Marunouchi/Otemachi
1.4%
1.2%
1.4%
1.1%
3.1%
45,650 45,700 45,900 45,850 46,000
Grade A-Minus All
2.3%
2.3%
2.5%
2.0%
1.8%
24,150 24,350 24,400 24,400 24,650
Grade B
All
3.2%
2.7%
2.7%
2.5%
2.1%
20,550 20,650 20,700 20,800 20,900
All Grade
All
2.7%
2.4%
2.5%
2.3%
2.4%
Central 5 Wards
2.3%
2.0%
2.2%
2.1%
2.3%
Marunouchi/Otemachi
1.3%
1.1%
1.2%
1.0%
2.0%
Kanda/Iidabashi
2.5%
2.2%
2.0%
1.8%
1.2%
Yaesu/Nihonbashi
2.9%
2.4%
2.0%
2.9%
3.0%
Roppongi/Akasaka
2.0%
2.0%
4.2%
4.2%
6.1%
Toranomon/Shiodome
2.0%
2.9%
2.9%
2.2%
2.4%
Shinjuku
2.1%
1.0%
1.2%
1.0%
1.0%
Shibuya/Ebisu
1.2%
1.2%
0.7%
0.8%
1.0%
Shinagawa/Tamachi
3.0%
2.4%
2.9%
2.7%
2.8%
Osaki
3.1%
2.4%
2.4%
1.4%
1.2%
Grade A
All
4.8%
4.5%
4.5%
2.8%
1.1%
20,150 20,150 20,200 20,350 20,900
Grade B
All
4.4%
4.0%
3.7%
3.2%
2.9%
11,250 11,350 11,550 11,650 11,850
All Grade
All
5.3%
4.9%
4.6%
3.9%
3.2%
Umeda
3.7%
3.4%
3.0%
2.2%
1.0%
Dojima
3.3%
4.3%
3.0%
2.3%
1.6%
Nakanoshima
4.6%
4.6%
5.3%
4.0%
2.1%
Yodoyabashi
7.4%
6.2%
5.7%
4.1%
2.9%
Honmachi
9.9%
9.1%
9.3%
7.9%
7.0%
Shin-Osaka
2.9%
2.8%
2.3%
2.1%
2.2%
Nagoya
Grade A
All
3.4%
3.0%
3.3%
4.0%
5.2%
23,650 23,650 23,550 23,500 23,800
Grade B
All
3.6%
3.8%
3.4%
3.2%
2.9%
12,050 12,050 12,100 12,150 12,300
All Grade
All
4.2%
4.1%
4.1%
4.1%
3.9%
Meieki
2.6%
2.4%
3.1%
3.7%
4.5%
Fushimi/Marunouchi
4.3%
4.5%
4.4%
3.6%
3.0%
Sakae
4.7%
5.1%
4.4%
4.3%
3.6%
Nagoya-Higashi
9.1%
7.4%
6.8%
6.8%
5.9%
All
4.6%
4.3%
4.4%
3.8%
3.0%
13,830 13,920 14,010 14,120 14,330
Around Yokohama Station
4.2%
4.3%
4.0%
3.3%
2.2%
13,190 13,280 13,330 13,470 13,610
Minato-mirai
5.0%
4.3%
4.7%
4.2%
3.6%
16,460 16,560 16,800 16,800 17,150
Yokohama All Grade
Saitama
All Grade
2.2%
2.1%
1.6%
1.4%
0.6%
15,510 15,650 15,730 15,880 15,980
Sapporo
All Grade
2.3%
1.5%
1.1%
0.8%
0.7%
11,080 11,340 11,520 11,830 12,090
Sendai
All Grade
7.2%
6.7%
6.9%
6.1%
5.5%
9,510
9,550
9,570
9,600
9,630
11.2% 10.4%
9.8%
8.3%
8.3%
9,580
9,620
9,680
9,710
9,810
Kanazawa All Grade
Kyoto
All Grade
3.2%
3.0%
2.3%
2.1%
1.4%
11,500 11,590 11,660 11,850 12,140
Kobe
All Grade
6.2%
5.9%
6.0%
5.7%
5.6%
10,650 10,680 10,740 10,780 10,780
Hiroshima All Grade
3.2%
2.8%
3.3%
3.3%
3.0%
10,060 10,200 10,250 10,370 10,440
11.4% 10.5% 10.0%
9.8%
9.6%
1.5%
1.0%
Takamatsu All Grade
Fukuoka
All Grade
2.4%
2.2%
2.1%
8,720
8,730
8,760
8,770
8,790
11,250 11,500 11,640 11,940 12,270
Source: CBRE, Q1 2017
Q1 2017 CBRE Research
©2017 CBRE, Inc. | 7
FOR MORE INFOR M ATION ABOUT THIS JAPAN
CBRE OFFICES IN JAPAN
OFFIC E M ARKET VIE W, PLE A SE CONTACT
TOKYO
J A PA N R E S E A R C H
Meiji Yasuda Seimei Building
2-1-1 Marunouchi, Chiyoda-ku, Tokyo
Hiroshi Okubo
Head of Research
[email protected]
SHIBA PARK
Shiba Park Building B
2-4-1 Shibakoen, Minato-ku, Tokyo
Koichi Suzuki
Senior Director
[email protected]
OSAKA
Osaka Kokusai Building
2-3-13 Azuchimachi, Chuo-ku, Osaka-shi, Osaka
Takeshi Yamaguchi
Associate Director
[email protected]
Naoko Kaihata
SAPPORO
Hokkaido Building
4-1 Kitanijonishi, Chuo-ku, Sapporo-shi, Hokkaido
SENDAI
Sendai Mark One
1-2-3 Chuo, Aoba-ku, Sendai-shi, Miyagi
Associate Director
[email protected]
YOKOHAMA
Hisari Asai
Yokohama ST Building
1-11-15 Kitasaiwai, Nishi-ku, Yokohama-shi, Kanagawa
Analyst
[email protected]
KANAZAWA
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Aube II Building
5-177 Kuratsuki, Kanazawa-shi, Ishikawa
NAGOYA
Miyuki Building
3-20-27 Nishiki, Naka-ku, Nagoya-shi, Aichi
HIROSHIMA
Shishinyo Building
3-17 Fukuromachi, Naka-ku,Hiroshima-shi, Hiroshima
FUKUOKA
Fukuoka Center Building
2-2-1 Hakata-Ekimae, Hakata-ku, Fukuoka-shi, Fukuoka
TERMS AND DEFINITIONS
Space Measurement
1tsubo=3.3058 square meters=35.58 square feet
Surveyed Buildings
Office buildings for lease located in office markets in 13 major cities nationwide, with gross floor area of 1,000 tsubo or more,
and compliant with the new earthquake resistance standards.
Quarterly Vacancy rate: (1) End of March (2) End of June (3) End of September (4) End of December
Quarterly Assumed achievable rents: (1) End of March (2) End of June (3) End of September (4) End of December
Annual Vacancy rate: End of December each year
Assumed achievable rents: January to December each year
Surveyed Period
Vacancy Rate
Vacancies are those that are ready to receive tenants at time of survey
Assumed Achievable Rent
Assumed achievable rent of floorplate (including common area maintenance fee)
Floor Space of New Supply
Leasing floor space of buildings completed during each period
Net Absorption
Grade A Samples
(as of Q1 2017)
Difference between occupied floor space (floor space used by tenants) in a given period and that of the previous period
Tokyo 79, Osaka 26, Nagoya 10
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