M'bishi Estate to lift office rents 15-20 pct-paper

TOKYO, May 24 (Reuters) - Mitsubishi Estate Co Ltd (8802.T), Japan's second-biggest property developer, will raise office rents in central city areas by 15 to 20 percent, the Nikkei business daily reported on Saturday.

Rock-bottom vacancy rates have helped Mitsubishi Estate and rival Mitsui Fudosan Co Ltd (8801.T) weather tougher times for much of Japan's property market that has been hit by tighter credit and stricter apartment building codes.

Mitsui Fudosan has also begun talks with tenants in central office buildings to raise rents by 10 to 15 percent and another major developer, unlisted Mori Trust Co, has started preparations on raising rents by an average of 10 percent, the paper said.

Mitsubishi Estate, which owns some 30 buildings in the prime Tokyo business district around Tokyo train station, has forecast its national vacancy rate at 1.3 percent for this business year, with vacancies in the area around Tokyo station close to nil.

Officials at Mitsubishi Estate and Mitsui Fudosan were not immediately available for comment. (Reporting by Edwina Gibbs; Editing by Lincoln Feast)