The Tokyo office market is particularly tight, with the vacancy rate at around 4% for all grades at the end of 2014. Grade A assumed achievable rents are forecast to rise by around 17% over the next two years to the end of 2016.
In Osaka, around 10,000 tsubo of relatively new, quality space is expected to become available in 2015 when a major corporation completes its own building. This is likely to put life back into the market by meeting buoyant demand.
In Nagoya, two prime buildings are scheduled for completion in 2015 in the Nagoya Station area, which are expected to stimulate recent latent demand on account of lacking supply.
Head of Research, Japan