A recently-built office building in Omotesando has been acquired by a J-REIT at an assumed cap rate of 3.0%. Japan Real Estate Investment Corporation (JRE) acquired a 77% ownership interest in the 13-story ‘3rd Minami Aoyama’ building from its sponsor Mitsubishi Estate for 21 billion Yen (approx. US$143 million) on March 8.
The building was completed in early 2023. Standard floor plates range from 233 to 261 tsubo (773 ~ 863 m2), with ceiling heights of 2,800mm and inner and outer terraces for office tenants. The NLA is 7,781 m2. The building is currently 78% leased, with two floors advertised for lease.
Newly-built office space along this street with large floor plates may see month rents around the 40,000 Yen per tsubo range (12,100 Yen/m2).
Source: Japan Real Estate Investment Corporation, March 7, 2024.
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