Tuesday, May 13, 2014

Tokyo office rents hit 4-year high in first half of 2014

Rents at Tokyo office buildings at least a year old have risen to the highest level in four and a half years in the first half of 2014, as many businesses seek larger accommodations.
     The trend is shown by the office building rent index, which is based on rates when owners solicit new tenants. The index came to 129.81 in the first half for properties in Tokyo built a year or more ago, up 3.92 points on the year. It takes the February 1985 figure as 100.
     Businesses are looking for more office space as they expand operations and conduct midcareer hiring.
     Companies "are in strong need of improving their locations, as they think about hiring and other factors," says an official at Tokyo Tatemono, a leading real estate developer.
     The index for new buildings, those less than a year old, fell. In this category, supply centers around midsize properties, which owners tend to have difficulty renting out at high rates.
     In Osaka, meanwhile, the index for buildings at least a year old was 124.45, up 1.95 points. The figure for new buildings fell.


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