Real Estate Market Status 2015 Spring
1 Weather Forecast in Japanese Real Estate the end of December, 2014 the first half of 2015 the second half of 2015 All Use Occasionally cloudy Occasionally cloudy Occasionally cloudy Office Occasionally cloudy Occasionally cloudy Occasionally cloudy Residential Occasionally cloudy Occasionally cloudy Occasionally cloudy Retail Cloudy Occasionally cloudy Occasionally cloudy Logistics facilities Occasionally cloudy Occasionally cloudy Occasionally cloudy (Source) T-MAX Co., Ltd. 2014 The Tanizawa Sogo Appraisal Co.,Ltd. All Rights Reserved.
2 Rising the rent in the Central Tokyo office zone (Otemachi, Marunouchi and Yurakucho) Property cycle Rent: UP Vacancy Rate: UP High rent Rent: DOWN Vacancy Rate: UP Low vacancy rate High vacancy rate This graph is showing the relationship between the average asking rent and vacancy rate. If the vacancy rate is higher, the rent will get lower. If the vacancy rate is lower, the rent will get higher. Rent: DOWN Vacancy Rate: DOWN Rent: UP Vacancy Rate: DOWN (present status) Low rent the Central Tokyo office zone In the large-scale office building leasing market, the vacancy rate and the rent are expected to gradually improve. The situation still remains to be seen, whereas the real estate market has shown signs of modest recovery.
3 MAP's( 1) ten thousands yen / tsubo( 3) 1,600 Price Levels - three central wards ( 2) / S A-class - as of April 1, 2015 1,400 1,200 1,000 800 600 400 1230 660 690 630 770 730 700 Summary The price levels have been rising as a recovery of rents and decline of cap rates. 200 0 Aoyama Roppongi Akasaka ginza Yotsuya Kanda Around Tokyo Station 1: Map s stands for Market Area Price System. As one of the features of MAP s, the price levels can be determined. (Source) T-MAX Co., Ltd. 2: Chiyoda, Chuo, Minato 3: 1 tsubo 3.3058 m2, 3.954sq yd or 35.586sq ft
4 Office&Residential Rent and Occupancy Rate yen/tsubo 20,000 Office occupancy rate 100 16,278 20,000 yen/tsubo Residential occupancy rate (%) (%) 100 15,000 96.5 15,000 96.1 10,000 95 10,000 11,037 95 5,000 0 3.3 Rent m2 per rent Capacity Occupancy utilization Rate 03S 04F 04S 05F 05S 06F 06S 07F 07S 08F 08S 09F 09S 10F 10S 11F 11S 12F 12S 13F 13S 14F 14S 90 5,000 0 3.4 Rent m2 per rent Capacity Occupancy utilization Rate 05F 05S 06F 06S 07F 07S 08F 08S 09F 09S 10F 10S 11F 11S 12F 12S 13F 13S 14F 14S 90 Year F:the first half S:the second half Year F:the first half S:the second half Office : The occupancy rate is heading for recovery after hitting the bottom in 2010. The rent levels in the second half of 2014 had risen, and it has been showing signs of recovery. Residential: The occupancy rate remains high, and the rent levels have been stable. 2014 The Tanizawa Sogo Appraisal Co.,Ltd. All Rights Reserved.
Real Estate Liquidity 5 the relationship between the total transaction number of J-REIT and DI (%) ( 1) DI (%), reported by Bank of Japan, was increased to +10 in the fourth quarter of 2014 and + 15 in the first quarter of 2015. It registered a record high. 1: DI (%) = Percentage share of enterprises responding Choice one minus Percentage share of enterprises responding Choice three. Judgment of the general cash position of the responding enterprise, on account of the level of cash and cash equivalent, lending attitude of financial institutions, and payment and repayment terms. Judgment requested only for "at the time of the survey. [1) Easy. 2) Not so tight. 3) Tight.] 2014 The Tanizawa Sogo Appraisal Co.,Ltd. All Rights Reserved.
6 Liquidity Index 800.0 Expansion Period 600.0 High Liquidity, Expansion period 585.6 2011.3.11 Great East Japan Earthquake 724.9 641.6 Low Liquidity, Recovery trend 400.0 200.0 Subprime mortgage crisis 0.0 注 ) 2015 年 3 月までのデータ (Year/Month) In 2014, the real estate liquidity has been trending downwards since the number of transactions had temporarily stagnated. However, both the number of transactions and the liquidity have shown signs of recovery. 2014 The Tanizawa Sogo Appraisal Co.,Ltd. All Rights Reserved.
7 Abundant experience in various fields Contributing to Society through Consultation and Solutions Based on Our Appraisal Appraisal Appraisal Our company has appraised various kind of real estate for the various purpose such as securitization. Our company wants to contribute to society through our appraisal service. Consulting Engineering Report on Building Research into Hotel Market Investigation Our company has tackled various kind of consulting about urban redevelopment. Our company can correspond to clients' demand of investigation into real estate, movable property, and inquiry by questionnaire. Investigation Evaluation of movable properties and ships Solution Consulting International Consulting services for urban redevelopment Business tie-up with Colliers INTERNATIONAL JAPAN Our company is able to conduct investigations of all kinds such as Engineering Report on Building, by our many professionals in various fields and in collaboration with our affiliates. Our company also responds to various needs of clients, including investigation on movable properties and surveys by questionnaire, in addition to real estate investigation. Solution Our company cooperates with group companies and other companies in the field and utilize our business network of professionals to provide solutions in various forms to respond to all kinds of needs of our clients. International Based on our past records and future policy, we actively seek international businesses, including cooperation with overseas appraisers (we currently cooperate with several overseas appraisers), increasing our foreign language-speaking staff members, and carrying out research on appraisal methods for overseas real properties. Research and Information Management Service Research and Information Management Service Our company has committees that are engaged in research activities. Our company also has a central information management system that enables efficient and agile information management. Our company gathers, organizes and analyzes the necessary information to evaluate real estate and deliver the information to our clients.
Network of offices Contribute to society as one of the BIG3 appraisal companies 8 Tanizawa Sogo Appraisal Co.,Ltd. was established in 1967. Since then, our company has been one of the largest private-sector corporations in the real estate appraisal business in Japan(Our performances are annually about 3,000 cases). There are seven offices, located in Tokyo, Osaka, Nagoya, Kobe, Hiroshima, Fukuoka, and Sendai. Moreover, our company have three affiliated companies, T Max, Japan Hotel Appraisal, and Union Research, which are operated as the support of real estate professionals. Our company is certified to ISO 27001, an information security standard, so that our information security management system remains secure. And, the system has been improved constantly. Kobe Hiroshima Osaka Nagoya Sendai Tokyo Number of Certified Specialists (as of March 2015, including affiliate companies) Licensed real estate appraiser 71 First-class architect 7 Second-class architect 8 Compensation consultant 20 And many others Fukuoka Our company has affluent appraisal assignment for securitized property since we received appraisal offers from Nippon Building Fund INC. (the first Japanese real estate investment corporation to be listed on the J-REIT section of the Tokyo Stock Exchange. Accomplishment (as of March 2015, in terms of company amount) Market Share of appraisal service : Listed REIT Investigation Compensation Engineering Report etc. Due diligence, FF index etc. Consulting about Hotel MR Appraisal etc. 66% 1 Market Share of Appraisal service : Private REIT 115.3%(in terms of appraisal order) 83% 2 142.0%(in terms of appraisal order) 1 Our company is receiving appraisal offers from 33 companies out of 50 Listed REIT. 2 Our company is receiving appraisal offers from 10 companies(including top3) out of 12 private REIT.
Our company has cooperated with Colliers International in collaboration with overseas appraiser and reviewed appraisal reports in overseas real estates. 9
10 Client Service Location Offices Profile Tokyo Head Office Address Akasaka Intercity, 1-11-44 Akasaka, Minato-ku, Tokyo 107-0052 Contact information International Services Dept. Shinichi Ogawa / Shinji Ishihara Phone / +81 3-5549-2202 (switchboard) FAX / +81 3-3505-2202
http://www.tanikan.co.jp/en/ 11