Tokyo Grade A Rents Predicted to Fall 3.0% y-o-y 2018 End

Rental Growth in Regional Cities Continues

HIGHLIGHTS FOR MAJOR CITIES

  • The Tokyo Grade A vacancy rate fell 0.7 points q-o-q to 1.8%, the third consecutive quarterly decline.
  • The Osaka Grade A vacancy rate remained at 0.3% q-o-q, the lowest level since CBRE's surveys began in 2005.
  • The Nagoya Grade A vacancy rate fell sharply, declining 2.3 points q-o-q to 2.3%.

RENTAL FORECASTS

  • CBRE expects the market to shift in favor of tenants, with Tokyo Grade A rents set to fall by 3.0% by the end of 2018.
  • Osaka Grade A rents are forecast to continue rising due to the tight market, increasing by 3.4% by the end of 2018.
  • Nagoya Grade A rents are forecast to rise by 1.2% at the end of 2018.