Tokyo’s office vacancies in July fell to the lowest level in three and a half years because of a lack of new supply, according to broker Miki Shoji Co.
The rate, a measurement of unoccupied space, fell to 8.29 percent last month from 8.46 percent in June, according to data released today by the closely held Tokyo-based company. The July rate was the lowest since January 2010 when it was 8.25 percent.
The office market in Japan’s capital is improving as new supply this year is expected to be about 40 percent of the level in 2012, according to broker DTZ. The vacant space of 12,000 tsubo (39,700 square meters or 427,000 square feet) was absorbed in a month, Miki Shoji said in today’s report.
One tsubo, a standard measure of property area in Japan, is 3.3 square meters, or 35.5 square feet.
The Topix Real Estate Index fell 0.6 percent at the close in Tokyo, while the Tokyo Stock Exchange REIT Index dropped 0.2 percent.