Risk of fluctuations in business performance due to economic deterioration, rising vacancy rates and falling rents
First written in FY2016. 18 of 39 entries say "Worsened", first in FY2017. Latest entry: 2026-08-06.
Sun Frontier Fudousan moved to the "Worse" side of this theme in 2018.
2 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「In the office market in Tokyo’s five central wards, the core area of our Group’s office building business, rents have continued to rise and vacancy rates to remain low, with firm market conditions continuing.」
In Tokyo’s five central wards, rents continued to rise and vacancy rates to remain low. The company explained that the risk of deteriorating market conditions through the previous fiscal year continued to ease. However, new supply is expected in some areas, and market polarization is also progressing. - 2026-05-11MitigatedEarnings
「In the office market in Tokyo’s five central wards, rents continued to rise and vacancy rates remained low, with market conditions staying firm.」
Continued rent increases and low vacancy rates were viewed as mitigating the risk of deterioration in the central Tokyo office market. - FY2026-H1MitigatedAnnual report
「In Tokyo’s five central wards, where our Group operates its office building business, rents have continued to rise and vacancy rates to improve. Although the supply of large-scale office buildings is expected to increase in 2025 compared with the previous year, demand remains firm, driven by positive relocation and expansion needs aimed at creating innovative office environments and securing talented personnel.」
In Tokyo’s five central wards, rents continued to rise and vacancy rates to improve, while relocation and expansion demand was described as firm. However, the expected increase in large-scale office supply in 2025 remains a risk. - FY2025MitigatedAnnual report
「In the real estate market, rents have continued to rise and vacancy rates to improve, helped by a decline in new office supply and the return to offices.」
The company explained that rising rents and improving vacancy rates have continued against a backdrop of declining new supply and the return to offices, indicating some easing in the risk of deteriorating office market conditions. - FY2025-H1MitigatedAnnual report
「In the real estate market, rents have continued to rise and vacancy rates to improve, helped by a decline in new office supply and the return to offices.」
The company explained that rising rents and improving vacancy rates have continued against a backdrop of declining new supply and the return to offices, indicating some easing in the risk of deteriorating office market conditions. - FY2024MitigatedAnnual report
「Average rents in the Tokyo Business District (Tokyo’s five central wards: Chiyoda, Chuo, Minato, Shinjuku and Shibuya) bottomed out in November 2023 after 40 consecutive months of decline at ¥19,726 per tsubo and have since been on a slight upward trend, reaching ¥19,820 in March 2024. The average vacancy rate peaked at 6.48% in June 2023 and has generally continued to improve, reaching 5.47% in March 2024.」
Average rents in Tokyo’s five central wards bottomed out after 40 consecutive months of decline and rose slightly to ¥19,820 in March 2024. The average vacancy rate also improved from its peak of 6.48% to 5.47%, indicating some easing in the risk of deteriorating market conditions. - FY2024-Q3MitigatedAnnual report
「Average rents in December in the Tokyo Business District (Tokyo’s five central wards: Chiyoda, Chuo, Minato, Shinjuku and Shibuya) rose to ¥19,748 per tsubo for the first time in 41 months, while the average vacancy rate remained broadly flat at 6.03%. Office market conditions had generally remained soft due to factors including the recommendation of remote work during the COVID-19 pandemic and increased vacant floor space following the completion of newly built buildings. However, demand is recovering as the importance of offices has been reaffirmed following the reclassification of COVID-19 as a Class 5 disease, and downward pressure on average rents is expected to ease.」
Average rents rose to ¥19,748 for the first time in 41 months, while the vacancy rate remained broadly flat at 6.03%. Although market conditions remain soft and the vacancy rate high, signs of recovering office demand and easing downward pressure on rents emerged, indicating some easing in risk perception. - FY2024-Q2WorsenedAnnual report
「In the real estate market, average rents in September in the Tokyo Business District (Tokyo’s five central wards: Chiyoda, Chuo, Minato, Shinjuku and Shibuya) fell for the 38th consecutive month to ¥19,750 per tsubo, down ¥3,264 in total, or 14.18%. The average vacancy rate was 6.15% and remained broadly flat, according to a private research firm, while office market conditions remained generally soft. In the real estate investment market, uncertainty has increased ahead of the large-scale supply of newly built offices scheduled for 2025. Although overseas institutional investors and others have become more cautious about office investment, demand for hotel investment is increasing as tourism demand recovers.」
Average rents in Tokyo’s five central wards fell for the 38th consecutive month to ¥19,750, while the average vacancy rate remained high at 6.15%. The large-scale supply of newly built offices scheduled for 2025 and greater caution among overseas institutional investors toward office investment have made risks to market conditions and the investment market more concrete. - FY2024-Q1WorsenedAnnual report
「Average rents in June in the Tokyo Business District (Tokyo’s five central wards: Chiyoda, Chuo, Minato, Shinjuku and Shibuya) fell for the 35th consecutive month from their peak in July 2020 to ¥19,838 per tsubo, down ¥3,176 in total, or 13.8%. The average vacancy rate for the same month was 6.48% and remained broadly flat, according to a private research firm. Overall office market conditions remain soft. ... As global monetary tightening measures continue, the outlook remains uncertain.」
Average rents in Tokyo’s five central wards fell for the 35th consecutive month to ¥19,838, while the average vacancy rate remained high at 6.48%. Uncertainty in the real estate investment market resulting from continued global monetary tightening also continued. - FY2023WorsenedAnnual report
「Average rents in March in the Tokyo Business District (Tokyo’s five central wards: Chiyoda, Chuo, Minato, Shinjuku and Shibuya) were ¥19,991 per tsubo, marking 32 consecutive months of decline, down ¥3,023 in total, or 13.1%. The average vacancy rate for the same month was 6.41% and remained broadly flat. Overall office market conditions remain soft.」
Average rents fell for the 32nd consecutive month to ¥19,991, while the average vacancy rate remained high at 6.41%. Soft office market conditions continued. - FY2023-Q3WorsenedAnnual report
「In the real estate market, average rents in December in the Tokyo Business District (Tokyo’s five central wards: Chiyoda, Chuo, Minato, Shinjuku and Shibuya) were ¥20,059 per tsubo, marking 29 consecutive months of decline, down ¥2,955 in total, or 12.8%. The average vacancy rate for the same month was 6.47% and remained broadly flat, according to a private research firm. Overall office market conditions remain soft.」
Average rents fell for the 29th consecutive month to ¥20,059, declining further from the previous quarter’s 26 consecutive months of decline and ¥20,156. The average vacancy rate also remained high at 6.47%, and soft office market conditions continued. - FY2023-Q2WorsenedAnnual report
「In the real estate market, average rents in September in the Tokyo Business District (Tokyo’s five central wards: Chiyoda, Chuo, Minato, Shinjuku and Shibuya) were ¥20,156 per tsubo, marking 26 consecutive months of decline, down ¥2,858 in total, or approximately 12%. The average vacancy rate for the same month was 6.49% and remained broadly flat, according to a private research firm. Overall office market conditions remain soft. Meanwhile, although institutional investors and others generally continue to show strong investment appetite in the real estate investment market, the outlook remains uncertain amid global monetary tightening.」
Average rents fell for the 26th consecutive month to ¥20,156, while the average vacancy rate remained high at 6.49%. Conditions deteriorated from the previous quarter, when rents had declined for 23 consecutive months and stood at ¥20,273, and uncertainty in the investment market resulting from global monetary tightening also continued. - FY2023-Q1WorsenedAnnual report
「In the real estate market, average rents in June in the Tokyo Business District (Tokyo’s five central wards: Chiyoda, Chuo, Minato, Shinjuku and Shibuya) were ¥20,273 per tsubo, marking 23 consecutive months of decline, down ¥2,741 in total, or approximately 12%. The average vacancy rate for the same month was 6.39% and remained broadly flat, according to a private research firm. Overall office market conditions remain soft. Meanwhile, although institutional investors and others continue to show strong investment appetite in the real estate investment market, the outlook remains uncertain amid global monetary tightening.」
Average rents fell for the 23rd consecutive month to ¥20,273. The average vacancy rate also remained high at 6.39%, and soft office market conditions and uncertainty in the investment market resulting from global monetary tightening continued. - FY2022-Q3Vacancy rates bottom out, but rent declines and interest-rate uncertainty continueAnnual report
「The deterioration in the average vacancy rate in the Tokyo Business District, where our Group operates its office building business, bottomed out in November 2021. As of December, the rate had improved slightly for the second consecutive month to 6.33%, an improvement of approximately 0.12 percentage points in total, according to a private research firm. However, average rents, which tend to lag, declined for the 17th consecutive month to ¥20,596 per tsubo, down ¥2,418 in total, or approximately 11%, and overall office market conditions remain soft. Although institutional investors and others continue to show strong investment appetite in the real estate investment market, the market is entering a period of global monetary tightening, and developments remain uncertain depending on the outlook for interest rates.」
The vacancy rate in Tokyo’s five central wards bottomed out at 6.33% in November 2021, showing a slight improvement. Meanwhile, average rents fell for the 17th consecutive month to ¥20,596, and uncertainty over the interest-rate outlook amid global monetary tightening also continued. - FY2022-Q2WorsenedAnnual report
「In the real estate market, average rents in the Tokyo Business District (Tokyo’s five central wards: Chiyoda, Chuo, Minato, Shinjuku and Shibuya) were ¥20,858 per tsubo, marking 14 consecutive months of decline, down ¥2,156 in total, or approximately 9%. The average vacancy rate deteriorated for the 19th consecutive month to 6.43%, a cumulative deterioration of approximately 5 percentage points.」
Average rents in Tokyo’s five central wards declined for the 14th consecutive month to ¥20,858, while the average vacancy rate deteriorated for the 19th consecutive month to 6.43%. Although the pace of deterioration is slowing, office market conditions remain soft. - FY2022-Q1WorsenedAnnual report
「In the real estate market, average rent in the Tokyo Business District, covering the five central wards of Chiyoda, Chuo, Minato, Shinjuku and Shibuya, fell to ¥21,160 per tsubo, declining for the 11th consecutive month by a total of ¥1,854, or approximately 8%. The average vacancy rate deteriorated for the 16th consecutive month to 6.19%, a total increase of 4.70 percentage points, according to a private research institution, and office market conditions remain generally soft.」
The decline in average rents and rise in the vacancy rate in Tokyo’s five central wards continued, with average rents at ¥21,160 and the average vacancy rate at 6.19%. Office market conditions deteriorated further from the previous quarter. - FY2021WorsenedAnnual report
「In Japan’s real estate market, average rent in the central Tokyo office market, covering the five central wards of Chiyoda, Chuo, Minato, Shinjuku and Shibuya, fell to ¥21,541 per tsubo in March, declining for the eighth consecutive month by a total of ¥1,473. The average vacancy rate deteriorated for the 13th consecutive month to 5.42%, a total increase of 3.93 percentage points, according to a private research institution, and market conditions are becoming increasingly challenging.」
Average rent in the five central Tokyo wards fell for the eighth consecutive month to ¥21,541, while the average vacancy rate deteriorated for the 13th consecutive month to 5.42%. Market conditions worsened further from the previous quarter’s 4.49%. - FY2021-Q3WorsenedAnnual report
「In Japan’s real estate market, average rent in the central Tokyo office market, covering the five central wards of Chiyoda, Chuo, Minato, Shinjuku and Shibuya, fell to ¥21,999 per tsubo in December, declining for the fifth consecutive month by a total of ¥1,015. The average vacancy rate deteriorated for the 10th consecutive month to 4.49%, an increase of 3.00 percentage points, according to a private research institution, and market conditions are becoming increasingly challenging.」
Average rent in the five central Tokyo wards fell for the fifth consecutive month, while the average vacancy rate deteriorated for the 10th consecutive month to 4.49%. The disclosure also cites office downsizing and the entrenchment of remote work, indicating that market conditions have worsened from the previous quarter. - FY2021-Q2WorsenedAnnual report
「In Japan’s real estate market, average rent in the central Tokyo office market, covering the five central wards of Chiyoda, Chuo, Minato, Shinjuku and Shibuya, fell to ¥22,773 per tsubo in September, declining for the second consecutive month. The average vacancy rate was 3.43%, having risen by a total of 1.94 percentage points for the seventh consecutive month, according to a private research institution, and the office market is considered to have begun deteriorating. Against the backdrop of the COVID-19 pandemic, some companies have also begun reducing office space as they promote remote work.」
Average rent in the five central Tokyo wards fell, while the average vacancy rate rose to 3.43%, marking 7 consecutive months of increases. Together with office downsizing associated with remote work, the risk of economic deterioration, rising vacancy rates and falling rents became more pronounced than in the previous quarter. - FY2021-Q1WorsenedAnnual report
「Average rent in the central Tokyo office market, covering the five central wards of Chiyoda, Chuo, Minato, Shinjuku and Shibuya, rose to ¥22,880 per tsubo in June, marking the 78th consecutive month of increases. However, the average vacancy rate rose to 1.97%, up 0.33 percentage points from the previous month and rising for the fourth consecutive month, according to a private research institution, indicating signs that the office market has peaked. Against the backdrop of the COVID-19 pandemic, some companies have also begun reducing office space as they promote remote work.」
While average rents continued to rise, the average vacancy rate in the five central Tokyo wards increased to 1.97%, rising for the fourth consecutive month, and the disclosure cited signs that the market had peaked. Office downsizing associated with remote work was also identified as a new concern. - FY2020MaterialisedAnnual report
「Since April, when the government issued a declaration of a state of emergency, signs of worsening supply and demand in the rental office market have emerged, including an increase in requests for rent reductions and termination applications from retail tenants and others occupying buildings owned or managed by the company.」
The risk of economic deterioration, rising vacancy rates and falling rents has materialized in the form of increased requests for rent reductions and termination applications from retail tenants and others amid the spread of the infectious disease. - FY2020-Q3WorsenedAnnual report
「The real estate investment market remains generally firm, supported by strong real estate investment by domestic institutional investors and J-REITs, among others, amid a continuing low-interest-rate environment, although real estate prices have surged and some financial institutions have adopted a more cautious lending stance.」
Market indicators improved, with a 1.55% vacancy rate and average rent of ¥22,206 in the five central Tokyo wards, while surging real estate prices and the more cautious lending stance of some financial institutions continue to be identified as concerns. - FY2020-Q2Market indicators improve, while a more cautious lending stance is also citedAnnual report
「In the real estate industry, the central Tokyo office market, covering the five central wards of Chiyoda, Chuo, Minato, Shinjuku and Shibuya, remains active, with the average vacancy rate below 2%, a level not seen since the bubble period in 1991. Although the rate has fluctuated slightly since April 2019, it was 1.64% as of September and remained at a historically low level. Average rent in September 2019 was ¥21,855 per tsubo, rising for the 69th consecutive month, according to a private research institution. Although some financial institutions have adopted a more cautious lending stance, the real estate investment market remains generally strong, supported by the continuing low-interest-rate environment and robust demand from overseas institutional investors, J-REITs and others.」
Market indicators remain improved and strong, with a 1.64% vacancy rate, average rent of ¥21,855 in the five central Tokyo wards and 69 consecutive months of rent increases. The more cautious lending stance of some financial institutions is also cited as a concern. - FY2020-Q1Market indicators remain strong, while macroeconomic uncertainty is also citedAnnual report
「In the real estate industry, the average vacancy rate in the central Tokyo office market, covering the five central wards of Chiyoda, Chuo, Minato, Shinjuku and Shibuya, fell below 2% for the first time in 27 years, since 1991 during the bubble period, and market activity remains strong. The rate was 1.72% in June 2019, up 0.08 percentage points from the previous month, but remained at a historically low level. Average rent in June 2019 was ¥21,518 per tsubo, rising for the 66th consecutive month, according to a private research institution. The real estate investment market also remains generally strong, supported by the continuing low-interest-rate environment and robust demand for real estate.」
The market environment was described as strong, with a 1.72% vacancy rate and average rent of ¥21,518 in the central Tokyo office market, including 66 consecutive months of rent increases. Separately, the disclosure states that uncertainty over the outlook has increased due to the prolonged US-China trade tensions and the slowdown of the Chinese economy. - FY2019WorsenedAnnual report
「In the real estate market, vacancy rates continue to decline and rents to rise moderately in central Tokyo, and current conditions remain firm. However, as large newly built buildings in central Tokyo are completed with high occupancy rates, the effects of large-scale cancellations and consolidation involving existing buildings have begun to emerge, and concerns have also begun to surface that the market is approaching its peak.」
Although market indicators remain firm, the disclosure cites the completion of large new buildings, large-scale cancellations and consolidation involving existing buildings, and concerns that the market is nearing its peak. Compared with the previous description of conditions as “generally strong,” specific warning signs have emerged. - FY2019-Q3SoftenedAnnual report
「Average rent at the end of December 2018 was ¥20,887 per tsubo, rising for the 60th consecutive month. It increased by ¥1,714, or 8.9%, over 2018, accelerating to more than twice the pace of the ¥633, or 3.4%, increase in 2017, according to a private research institution. Meanwhile, although concerns remain over the scarcity of investment properties and the stricter lending stance of financial institutions, the Tokyo central-city real estate investment market remains generally strong.」
The average vacancy rate in the five central Tokyo wards improved to 1.88%, while average rent rose to ¥20,887, and the real estate investment market was described as generally strong despite remaining concerns. Concerns over the scarcity of investment properties and the stricter lending stance continue. - FY2019-Q2WorsenedAnnual report
「The real estate investment market remains active, but the outlook continues to be viewed cautiously amid concerns including the scarcity of investment properties and the stricter lending stance of financial institutions.」
While market indicators improved, with a 2.33% vacancy rate and average rent of ¥20,438 in the five central Tokyo wards, the disclosure identified the scarcity of investment properties and the stricter lending stance of financial institutions as additional concerns. - FY2019-Q1SoftenedAnnual report
「In the real estate industry, the average vacancy rate in the central Tokyo office market was 2.57% in June 2018, improving by 6.86 percentage points over 6 years from the recent high of 9.43% in June 2012. Average rent was ¥20,108 per tsubo, approximately 24% higher than the previous low of ¥16,207 in December 2013, a rise over 4.5 years, according to a private research institution. Meanwhile, although central Tokyo condominium prices remained high and concerns over a peak have receded, the outlook for the real estate investment market continues to be viewed cautiously.」
The disclosure describes improving vacancy rates and rising rents for central Tokyo offices and says concerns over a peak in the central Tokyo condominium market have receded. However, it does not indicate that all risk perceptions concerning the real estate investment market have disappeared, as a cautious view remains. - FY2018WorsenedAnnual report
「The real estate investment market remains active, but the outlook continues to be viewed cautiously because investment yields remain low and properties suitable for investment are becoming increasingly scarce.」
The disclosure cites the scarcity of investment properties in addition to low yields and maintains a cautious outlook for the real estate investment market. - FY2018-Q3WorsenedAnnual report
「The real estate investment market remains active, but the outlook continues to be viewed cautiously because prices remain high and investment yields remain low.」
Although the formal risk section states that there have been no material changes, the disclosure specifically describes high real estate prices, low yields and a cautious outlook for the real estate investment market. - FY2018-Q2RestatedAnnual report
「During the first six months of the current consolidated fiscal year, there were no new business or other risks, nor any material changes to the business and other risks described in the securities report for the previous fiscal year.」
The company states that there have been no new developments or material changes concerning the risk of earnings volatility due to economic deterioration, rising vacancy rates and falling rents. - FY2018-Q1RestatedAnnual report
「During the first quarter of the current fiscal year, there were no new business or other risks, nor any material changes to the business or other risks described in the securities report for the previous fiscal year.」
The company states that there have been no new developments or material changes concerning the risk of earnings volatility due to economic deterioration, rising vacancy rates and falling rents. - FY2017WorsenedAnnual report
「The real estate market remains firm, with vacancy rates declining and rents rising moderately in central Tokyo against a backdrop of strong corporate earnings. However, concerns have begun to emerge that the market is approaching its peak, due to uncertainty over the outlook for overseas economies and the large volume of office supply scheduled for completion in central Tokyo from 2018 onward.」
The current market is described as firm, while the disclosure specifically cites the large volume of central Tokyo office supply from 2018 onward and concerns that the market is nearing its peak, heightening vigilance over future changes in vacancy rates, rents and business performance. - FY2017-Q3RestatedAnnual report
「During the nine-month cumulative consolidated period under review, there were no new business or other risks, and no material changes to the business or other risks described in the securities report for the previous fiscal year.」
The company states that there have been no new developments or material changes concerning the risk of earnings volatility due to economic deterioration, rising vacancy rates and falling rents. - FY2017-Q2RestatedAnnual report
「During the first six months of the current consolidated fiscal year, there were no new business or other risks, nor any material changes to the business and other risks described in the securities report for the previous fiscal year.」
The company states that there have been no additional developments or material changes concerning the risk of earnings volatility due to economic deterioration, rising vacancy rates and falling rents. - FY2017-Q1RestatedAnnual report
「During the first quarter of the current fiscal year, there were no new business or other risks, nor any material changes to the business or other risks described in the securities report for the previous fiscal year.」
The company states that there have been no additional developments or material changes concerning the risk of earnings volatility due to economic deterioration, rising vacancy rates and falling rents. - FY2016First statedAnnual report
「However, if economic conditions deteriorate and the real estate market stagnates due to factors such as rising vacancy rates and falling rents, the group’s business performance may be affected.」
The deterioration of the central Tokyo office market is identified as an external risk that could affect vacancy rates, rents and business performance.