Office vacancy rate in central Tokyo falls to post-COVID low
TOKYO (Kyodo) -- The vacancy rate of offices in central Tokyo has fallen to the 1 percent range, the lowest since the outbreak of the COVID-19 pandemi
The vacancy rate for offices in central Tokyo has dropped to its lowest level since the start of the COVID-19 pandemic, according to a recent survey conducted by office brokerage firm Miki Shoji Co. The rate currently stands at just 1.87 percent in the central five wards of Tokyo - Chiyoda, Chuo, Minato, Shinjuku, and Shibuya. This is a significant decline from 6.49 percent in August 2022, when remote work became more widespread.
The drop in vacancy rates is due to companies reversing their trend of remote work and emphasizing face-to-face interaction. Companies like LY Corp. and GMO Internet Group Inc. are returning to in-person work, requiring staff to be present more frequently. GMO Internet Group Inc., for instance, aims to open a new office directly connected to Shibuya Station to accommodate the growing number of group companies.
Despite rising construction costs, the supply squeeze is expected to persist, limiting the number of new offices available. As a result, the decline in vacancy rates is likely to continue through 2027, according to Ryota Takemoto, a senior researcher at Mitsubishi UFJ Trust and Banking Corp. The demand for offices in urban areas remains strong due to the importance of physical presence for everyday conversations, chance interactions, and building relationships across departments.
Written by urgent.news from The Mainichi's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
