Vacancy rate stands below 1% across all grades in three main cities

HIGHLIGHTS
Tokyo Grade A vacancy rate fell 0.2 points q-o-q to 0.5%, a drop for two consecutive quarters. Tokyo Grade A rents rose by 1.2% q-o-q to JPY 38,800 per tsubo. 
Osaka Grade A vacancy rate fell 0.1 point q-o-q to 0.2%. Osaka Grade A rents rose by 1.2% q-o-q to JPY 25,950 per tsubo.
Nagoya Grade A vacancy rate unchanged q-o-q to 0.1%. Nagoya Grade A rents rose by 1.8%
q-o-q to JPY 27,800 per tsubo.
RENTAL OUTLOOK
We forecast Tokyo Grade A rents to decline by 0.5% over the next year. Meanwhile, Osaka Grade A rents are forecast to rise by 4.1% over the next year, and Nagoya Grade A rents are expected to rise by 1.9% over the next year.