Tokyo’s office rent boom spurs deals as Blackstone plans sale
Commercial-property investment across Japan hit ¥2 trillion in the third quarter, according to data from brokerage firm Jones Lang LaSalle.
Despite interest rates hitting a 31-year high, Tokyo's office market continues to thrive, driven by soaring rents and increased investment activity. The commercial-property market in Japan saw its highest deal volume for the third quarter since 2007, with office deals making up 36% of the total deals, according to Jones Lang LaSalle (JLL) data. Nearly 70% of all investments were concentrated in the Tokyo region.
Research director Koji Naito of JLL Japan suggests that the rising rents are enticing investors, as it offers substantial rental upside, especially when the current office rents are lower than the prevailing market rates.
Written by urgent.news from Japan Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
