Tokyo office vacancies rise to 2-year high in June

Tokyo office vacancies rise to 2-year high in June Tokyo's office vacancies rose in June to the highest in two years as companies cut spending. The Tokyo office vacancy rate rose for the fifth month in a row, increasing to 3.49 percent in June from 3.29 percent in May, real estate brokerage Miki Shoji Co. said in a report released today through the Ministry of Land, Infrastructure and Transportation.

Business investment fell 0.9 percent in the three months ended March 31 from the previous quarter, the Cabinet office said on May 16. The Bank of Japan said on July 7 the economy has worsened in eight of the country's nine regions since April as costlier energy and raw materials slow expansion.

Average office rents in the capital's five main business districts of Chiyoda, Chuo, Minato, Shinjuku and Shibuya rose to 22,868 yen per tsubo ($64.88 per square meter) in June, from 22,826 yen a month earlier. The average rent for existing buildings in the area rose to 22,379 yen from 22,318 yen, Miki Shoji said. A tsubo, the standard measure of property in Japan, is 3.3 square meters, or 35.5 square feet.

Source: Bloomberg

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