Tokyo's Office Vacancy Rate Rose to Record in August; Developers Decline

Tokyo’s office vacancy rate rose to a record in August amid increased competition to find tenants, according to Miki Shoji Co., a privately held office brokerage company. Shares of property developers dropped.

The measure of unoccupied office units climbed to 9.17 percent last month from 9.1 percent in July, Tokyo-based Miki Shoji said in a report today. The increase came after the rate fell for the first time in more than two years in July.

The Topix Real Estate Index, measuring 44 property-related stocks, slid 1.9 percent at the 3 p.m. close in Tokyo, making it the worst performer among the 33 industry groups in the benchmark, and erasing its earlier gain.

Mitsui Fudosan Co., Japan’s biggest developer, dropped 3.6 percent to 1,353 yen, while its rival Mitsubishi Estate Co. declined 1.9 percent to 1,295 yen, both erasing earlier advances.

To contact the reporter on this story: Katsuyo Kuwako in Tokyo at kkuwako@bloomberg.net

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