This area was the standout performer in Tokyo’s office market in 2023

It had the lowest vacancy of 1.6% in Q4 2023.

According to a Savills report, Shibuya appears to be a standout performer amongst the C5W in 2023. Rents increased by 1.9% QoQ at JPY35,659 per tsubo. 

Although vacancy loosened slightly by 0.5ppts QoQ, the report sadi the situation in Shibuya remains tight, with average vacancy at 1.6% in Q4/2023, which is among the lowest in the C5W. 

Here’s more from Savills:

Shibuya is a popular office location, due to its convenient location and range of amenities nearby, and is a particularly popular area among IT firms, as well as foreign companies.  Modern offices have enjoyed strong interest among tenants in 2023, demonstrated by firm pre-leasing activity and low levels of vacancy among such developments, particularly Shibuya Sakura Stage, and availability is currently scarce overall in the market. As such, landlords are in a strong position and future rental increments are possible. 

Given the tight conditions in the Shibuya market, tenant relocation activity has been relatively limited over the quarter. Broad-minded will relocate its headquarters to Shibuya Sakura Stage in October 2024, reportedly leasing 500 tsubo in the building, which will be the largest move in Shibuya announced in Q4/2023. The company plans to expand its staff headcount, and aims to provide a comfortable working environment that enables communication and has close proximity to Shibuya station. 

Meanwhile, Ject One will relocate its headquarters to SHIBUYA AXSH in December 2024, which is currently under construction near Shibuya station. The company plans to expand on its current office space, leasing around 400 tsubo, in anticipation of accelerating hiring activity, but appears to maintain hybrid work arrangements for the time being.