TOKYO -- With a string of new large office building projects slated for completion, three times as much new office space is expected to hit the market in central Tokyo next year, possibly causing the office vacancy rate to stop falling for the first time in seven years.
Notable increases will be seen in such areas as Chiyoda and Chuo wards, according to a Japanese unit of real estate services giant Jones Lang LaSalle. Even when only office buildings with a total floor space of at least 30,000 sq. meters are counted, 596,940 sq. meters of new office space will be added in central Tokyo in 2018. The largest rise since the 2008 financial crisis stems from the adoption of more relaxed building codes that has given birth to various redevelopment projects.
