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Yen Slump Yields Tokyo Office Bargains

NEW YORK CITY-A steady yen depreciation results in a ripe Tokyo office market for US multinational companies, according to a recent Cushman & Wakefield report. As the world's second-largest economy, Japan continues its struggle against the American dollar and the euro.

By Michael Gilliard | Updated on March 15, 2002

NEW YORK CITY-The Yen’s continued deflation makes this an ideal time for US multinationals to invest in Tokyo office space, advises a new global cost report released by Cushman & Wakefield.

Occupancy costs in Tokyo have dropped 16% over the last quarter. Similarly, the report claims Tokyo’s occupancy costs have decreased from $119.03 per sf in the third quarter of 2001, to $99.87 in the fourth quarter of 2001. Combined with currency deflation, these two indicators should make the city financially attractive to multinational investors.

“This decrease of the yen against the US dollar is a primary reason that now is a good time for US multinational companies to capitalize on Tokyo real estate,” Paula Forys, assistant research director at Cushman & Wakefield, tells GlobeSt.com. The Yen currently stands at close to 130 against the US dollar.

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