Vacancy rate in Greater Tokyo Area falls to record low 0.5%

  • The vacancy rate for Large Multi-Tenant (LMT) properties in the Greater Tokyo Area fell from 1.1% in Q4 2019 to 0.5% in Q1 2020, the lowest level since CBRE's surveys began in 2004. Effective rents rose by 2.1% q-o-q to JPY 4,380 per tsubo, marking the largest quarterly gain since surveys began in Q1 2008.
  • The vacancy rate in the Greater Osaka Area LMT market fell by 0.3 points q-o-q to 3.7%, effective rents were unchanged this quarter at JPY 3,810 per tsubo.
  • The vacancy rate in the Greater Nagoya Area LMT market fell by 1.7 points q-o-q to 7.9%. Effective rents stood at JPY 3,590 per tsubo, a rise of 0.3% q-o-q.

Impact of the spread of COVID-19

  • E-commerce-related demand, which had already been driving leasing activity in logistics facilities, remains strong, and logistics demand overall is solid. Companies in selected sectors are likely to reduce floor area if the COVID-19 outbreak is protracted and economic activity is sluggish for a long period.