CBRE Research expects Tokyo office rents to shift to a moderate downward trend from 2H 2017. While the Greater Tokyo logistics market continues to see stable demand, new supply remains significant, and has already led to rise in vacancy rates in some areas.
Positive stimuli run up by an incoming U.S. Presidential administration suggests that risk is on the upside in demand for leasing spaces. These could include tax cuts and infrastructure investments, as suggested by the president-elect during his campaign. According to CBRE, the pace of pre-leasing activity for offices slated for completion in Tokyo in the coming quarters will be an important indicator of any changes in the market sentiment.