In its Global Market Perspective report for Q315, Jones Lang LaSalle (JLL) notes that the notional capital values of prime office buildings in Tokyo have risen by 20.6% over the last year. The prime yield is 3.1%, or a 2.66% premium to the yield on 10-year government bonds. Over the last year, rents have risen by 6.8% and net absorption (on a rolling one year basis) has been 3.3%. The vacancy rate is currently 3.3%. Taking into account completions of new projects prior to the end of 2016, the supply pipeline is 10.5% of current stock. JLL considers that conditions will likely favour landlords in 2016.

Source : November 2015/JLL/Tokyo/OFF