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This page explains management status in Tokyo Office properties located in Greater Shibuya and Shinagawa/Gotanda area where is part of our focused area.
Rent gaps for these areas, negative 20% and 19% for each, are wider than that of Tokyo Office properties which is negative 10%.
In addition, rent gaps by area are illustrated with pie charts and especially in Shinagawa/Gotanda area, many lease contracts are subject to rent revision for coming years in the periods ending November 2019 and May 2020.
Please move on to upper right 2 graph showing rent increase rate.
Since the period ended May 2017, increase rate has hovered around 10% in Greater Shibuya area, a leading area for market.
Since the period ended May 2019, we observe an acceleration in rent increase in Shinagawa area where tenant leasing for area newly developed by large scale have completed and in Gotanda area where IT companies flowed from Shibuya have concentrated.
Bottom 3 shows examples of tenant replacements at A-PLACE Shinagawa and A-PLACE Gotanda, which are symbolic cases to present favorable conditions of those two area.
Especially at A-PLACE Shinagawa, we have successfully replaced tenants with a contracted rent largely exceeding rent gap as a result of a bid which is a limited case in leasing activities, but we took this measure due to that we received a rush of inquiries from corporates.
We expect that tenant replacements planned in some properties in Shinagawa/Gotanda area will provide further opportunities for internal growth backed by favorable market conditions as mentioned above.
Please move on to the next page.
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