Office – Cap rate for real estate investment in Japan
Investors survey – cap rate for office buildings in Japan as of June.2010
ARES announced its half-yearly survey of cap rates expected by professional real estate investors.
The result shows investor are expecting that core office assets in prime CBDs such as Marunouchi and Nihonbashi will stay being competitive and cap rate will not increase.
Supposed office type.
| A-Class office building | |
| Tenant | Multi tenant |
| Access | less than 5 mins from station |
| Building age | Built in 10 yrs |
| Buiding area | More than 50,000m2 |
| Standard floor area | More than 1,500m2 |
Marunouchi - a major part of Tokyo CBD -
Cap rates by areas
| Area | Cap rate | |||
| Target (Present) | Market (Present) | Forecast of 6 months later | ||
| Tokyo | Marunouchi / Otemachi | 4.60% | 4.30% | 4.30% |
| Nihonbashi | 5.00% | 4.80% | 4.80% | |
| Kanda | 5.50% | 5.25% | 5.25% | |
| Toranomon | 5.20% | 5.00% | 5.00% | |
| Shiodome | 5.35% | 5.00% | 5.00% | |
| Akasaka / Tameike | 5.30% | 5.00% | 5.00% | |
| Roppongi | 5.40% | 5.00% | 5.00% | |
| Shinagawa | 5.50% | 5.15% | 5.15% | |
| Shinjuku (west office area) | 5.50% | 5.20% | 5.20% | |
| Shibuya | 5.50% | 5.20% | 5.20% | |
| Ikebukuro | 5.70% | 5.50% | 5.50% | |
| Ueno | 6.00% | 5.70% | 5.70% | |
| Osaki | 5.80% | 5.50% | 5.50% | |
| Ebisu | 5.75% | 5.40% | 5.30% | |
| Other Cities | Saitama | 6.70% | 6.50% | 6.50% |
| Chiba | 7.05% | 6.80% | 6.80% | |
| Yokohama | 6.50% | 6.20% | 6.20% | |
| Sapporo | 7.25% | 7.10% | 7.10% | |
| Osaka | 6.50% | 6.00% | 6.00% | |
| Fukuoka | 6.80% | 6.70% | 6.70% | |
Source : ARES
Asterisk Realty is a first class private Japanese real estate brokerage that markets high net worth Japanese properties to international investors seeking advisory on property development, ownership, investment and occupation.
Superb off-market properties are rarely seen in the open market even during times of financial hardship. However there is a door way into the discrete market where conservative Japanese property owners welcome trusted and accredited “outside buyers”. Asterisk Realty is an exclusive gateway to build trust with foreign investment interest and introduce the best of the best off-market properties.
Please contact us for superb investment opportunities in Japan.
Contact : info@asteriskrealty.jp