Risk of Rising Office Vacancy Rates and Declining Asking Rents
First written in FY2021. 8 of 15 entries say "Restated". Latest entry: FY2027-H1.
3 other companies' latest entry also says "Restated".
- FY2027-H1RestatedAnnual report
「Detailed leasing activities kept rental properties operating at close to 100% occupancy, resulting in revenue broadly in line with the same period of the previous year.」
Despite the difficult office leasing market, occupancy remained close to 100% and revenue remained broadly in line with the same period of the previous year. - FY2026MitigatedAnnual report
「The average vacancy rate for rental offices in Tokyo was in the 3% range at the beginning of 2025, continued to trend toward recovery thereafter, and fell to the low-2% range at year-end. Average rents continued to trend upward, with higher construction and management costs due to inflation also contributing to the increase.」
The average vacancy rate in Tokyo’s office market declined from the 3% range to the low-2% range at year-end, while average rents also continued to trend upward. Market conditions have improved from those through the previous fiscal year. - FY2026-H1RestatedAnnual report
「As Tokyo's rental office market became increasingly challenging, detailed leasing activities enabled the rental properties to maintain occupancy of nearly 100%, resulting in revenue at the same level as in the corresponding period of the previous year.」
Even in the difficult rental office market, the maintenance of occupancy close to 100% and revenue at about the same level as in the same period of the previous year through detailed leasing activities was reaffirmed. - FY2025MitigatedAnnual report
「The average vacancy rate for rental offices in Tokyo has been trending toward recovery after being in the 5% range at the beginning of 2024, falling to the 3% range in 2025. Average rents, which had been on a downward trend since the COVID-19 pandemic, also continued to rise gradually throughout 2024.」
In Tokyo’s office market, the average vacancy rate declined from the 5% range to the 3% range, while average rents also began trending upward. The market environment of rising vacancy rates and falling rents improved somewhat. - FY2024RestatedAnnual report
「In Tokyo’s rental office market, vacancy rates have risen from the 4% range to the 5% range in some months due to more than 200,000 tsubo of new supply in 2023.」
While the risk of rising vacancy rates due to substantial new supply persists, leasing activities have maintained occupancy close to 100% at the company’s properties. - FY2024-Q3RestatedAnnual report
「As Tokyo's rental office market became increasingly challenging, detailed leasing activities enabled the rental properties to maintain occupancy of nearly 100%, resulting in revenue at the same level as in the corresponding period of the previous year.」
While difficult conditions continued in the rental office market, leasing activities maintained high occupancy and revenue at about the same level as in the same period of the previous year. - FY2024-Q2RestatedAnnual report
「As Tokyo's rental office market became increasingly challenging, detailed leasing activities enabled the rental properties to maintain occupancy of nearly 100%, resulting in revenue at the same level as in the corresponding period of the previous year.」
While difficult conditions continued in Tokyo’s rental office market, leasing activities maintained occupancy close to 100% and revenue at about the same level as in the same period of the previous year. - FY2023WorsenedAnnual report
「More than 200,000 tsubo of new supply is scheduled for 2023, and the leasing period is expected to be longer than before the COVID-19 pandemic.」
In addition to vacancy rates in the mid-4% range and falling asking rents, concerns have been raised about more than 200,000 tsubo of new supply in 2023 and longer leasing periods. - FY2023-Q3RestatedAnnual report
「The rental buildings maintained high occupancy and rental rates at pre-pandemic levels despite declining market rents, resulting in revenue at the same level as in the corresponding period of the previous year.」
Despite the environment of falling market rents, high occupancy was maintained and revenue remained at about the same level as in the same period of the previous year. - FY2023-Q2RestatedAnnual report
「The rental buildings maintained high occupancy and rental rates at pre-pandemic levels despite declining market rents, resulting in revenue at the same level as in the corresponding period of the previous year.」
Despite the environment of falling market rents, high occupancy and pre-pandemic rent levels were maintained, and revenue remained at about the same level as in the same period of the previous year. - FY2023-Q1MitigatedAnnual report
「The rental buildings maintained high occupancy and rental rates at pre-pandemic levels despite declining market rents, resulting in revenue at the same level as in the corresponding period of the previous year.」
Despite the risk environment of falling market rents, high occupancy and rent levels were maintained, keeping revenue at about the same level as in the same period of the previous year. - FY2022WorsenedAnnual report
「As working from home and remote work have become more widespread, some companies are downsizing their offices, raising concerns that supply may become excessive.」
In addition to the risk of rising vacancy rates and falling asking rents, concerns have been raised about weaker supply-demand conditions due to office downsizing caused by remote work and a large volume of new supply through 2023. - FY2022-Q3RestatedAnnual report
「Although we sold 1 rental building during the current quarter-to-date period, revenue was at the same level as in the corresponding period of the previous year because demand for small offices grew and the other rental buildings maintained high occupancy.」
Even after the sale of one rental building, growth in demand for small offices and the maintenance of high occupancy kept revenue at about the same level as in the same period of the previous year. - FY2022-Q2MitigatedAnnual report
「Although we sold 1 rental building during the current quarter-to-date period, revenue was at the same level as in the corresponding period of the previous year because demand for small offices grew and the other rental buildings maintained high occupancy.」
Demand for small offices continued to grow after the sale of one office building, and high occupancy was maintained at the other rental buildings, showing some improvement in earnings against the risk of vacancies and falling rents. - FY2021First statedAnnual report
「Both the area available for lease and currently vacant area have increased, and asking rents have also declined as leasing terms are being reviewed. However, the imbalance between demand and supply caused by the spread of the novel coronavirus is expected to continue for some time.」
The increase in vacant and available-for-lease office space in Tokyo and the decline in asking rents were cited as current conditions, with an impact on rental income expected.