The Tokyo office market is expected to increase following growth in the Japanese economy in the second quarter of 2013, according to a report by DTZ.

The recently released DTZ Property Times Japan Q2 2013 report indicates that although there was an increase in vacancies in the Tokyo central business district office market, a rental increase was recorded during the same time period, which is an indication the sector is improving. This follows the economic change in Japan, which is showing signs of improvement with the introduction of the new government in 2012, and an unprecedented monetary policy stimulus by the Bank of Japan.

Landlords in prime buildings with high occupancy rates are starting to demand higher rents, increasing the average asking rent in the second quarter.

Despite the second quarter adjustments to the office industry, DTZ forecasts that the office market will slowly improve in 2013. As the economy continues to recover, increased hiring will fuel an increase in office demand.