(Changes quote attribution to full company name in paragraph 5)
TOKYO Dec 16 Rents for first-class offices in
Tokyo will likely bottom out in the first half of 2010 and
foreign investors have already begun hunting investment
opportunities in the city's property market, a report said.
The average rent for Tokyo's grade A offices fell 35 percent
by September from the recent peak in March 2008 and nearing
levels seen in 2003 and 2004, property adviser Jones Lang LaSalle
Looking ahead, however, the city's premier office rents are
likely to bounce higher in the first half of 2010 after falling
to within 10 to 20 percent of the bottom seen in 2004, thanks to
limited supply, the report said.
A recovery in the office market would also likely lift
investor sentiment as well as banks' willingness to lend, the
"Foreign investors had been sitting on the sidelines in 2009
because of a falling rents and higher yields. But investors,
especially those managing foreign pension funds, have begun
mulling re-entry given signs of improvement in the market," Jones
Lang LaSalle said.
"We believe we will witness a return of those investors to
the country's property market in early 2010" it said.
(Reporting by Mariko Katsumura; Editing by Michael Watson)