July 14, 2023 – Office occupancy rate in Tokyo is expected to fall in the second half of 2023 due to excess supply with recovery seen in 2024, according to a survey by Nikkei Real Estate Market Report.
For the second half of 2023, with the lingering impact of the large supply, 15 out of 20 respondents said the occupancy rate will see a “slight decrease or “decrease.”
Survey participants expected the market to improve in the first half of 2024 as inventory falls with 15 expected occupancy to be flat or show a slight increase. In the second half of 2024, more expected occupancy to show increases.
Respondents expected rent to fall in the second half of this year, and remain soft in 2024. Sixteen respondents see a “slight decrease” in rent for the second half of 2023. This number falls to 13 for the first half of 2024 and ten for the second half.
