Expected Real Estate Cap Rates in Tokyo
Please click the link below to view Investment Parameters for Benchmark Office Building (April 2009)
| Expected Cap Rate | 4.5% |
| Assumed Holding Period | 5years |
| Internal Rates of Return | 5.0% |
| Terminal Cpa Rate | 4.5% |
| Risk Permium(above 10yrs JGB rate) | 3.0% |
| Equity/mortgage Ratio and Mortgage rate | 60%(debt portion) |
| 2.5%(mortgage rate) | |
| Market Cpa Rate | 4.2% |
Cap Rate of Typical Class A office Building in Various Locations
| Location | Expected Cap Rate | Market Cap Rate |
| Nihonbashi | 4.9% | 4.7% |
| Kanda | 5.2% | 5.0% |
| Akihabara | 5.2% | 5.0% |
| Toranomon | 5.0% | 4.7% |
| Shiodome | 5.0% | 4.8% |
| Akasaka | 5.0% | 4.7% |
| Roppongi | 5.0% | 4.8% |
| Konan | 5.2% | 5.0% |
| Nishi Shinjuku | 5.2% | 4.9% |
| Shibuya | 5.1% | 4.9% |
| Ikebukuro | 5.5% | 5.2% |
| Ueno | 5.7% | 5.4% |
| Osaki | 5.3% | 5.2% |
Cap Rate of Residential Property
| Type | Location/feature | Expected Cap Rate | Market Cap Rate |
| Standard Studio | Southern Tokyo(Meguro and Setagaya Wards) within 15minutes from nearest train station |
6.0% | 5.8% |
| Eastern Tokyo(Sumida and Koto Wards) within 15minutes from nearest train station |
6.3% | 6.2% | |
| Standard Multifamily (non-studio-unit) |
Southern Tokyo(Meguro and Setagaya Wards) within 15minutes from nearest train station |
6.0% | 6.0% |
| Eastern Tokyo(Sumida and Koto Wards) within 15minutes from nearest train station |
6.3% | 6.3% | |
| High-End Multi Family for Expatriates | Low-Rise Azabu/Akasaka/Aoyama District, Minato Wards Average Unit Size ：100 square meters or more(1075 square feets) Total Unit ：20Units, more or less |
6.0% | 6.0% |
| High-Rise Azabu/Akasaka/Aoyama District, Minato Wards Average Unit Size ：100 square meters or more(1075 square feets) Number of Stories: more than 20 floors |
6.0% | 5.9% |
Expected Cap Rate of Retail Property
| Type | Location | Expected Cap Rate |
| Standard Studio | Ginza District Along Ginza Ghuo Avenue In Chuo Ward |
4.5% |
| Omotesando District Along Omotesando Avenue in Shibuya Ward |
4.7% | |
| Suburban Shopping Center | Onw houe drive from Downtown Tokyo, along a mojor High way | 6.5% |
Expected Cap Rate of Economy Hotel for Loading
| Type | Location | Expected Cap Rate |
| Economy Hotel For Loading Building Age: less than 5years Number of Rooms: Approximately 100 Average Daily Rate: 6,000-8,000 yen Operation Rate: 80% or more Management: LC |
Tokyo | 6.1% |
| Sapporo | 7.0% | |
| Nagoya | 6.9% | |
| Osaka | 6.8% | |
| Fukuoka | 7.0% |
(SOURCE: 日本不動産研究所 「不動産投資家調査」, Japan Real Estate Institute “The Japanese Real Estate Investment Survey”)