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![Vacancy Rate and Rent [Parent company]](../images/08.jpg)
Next, I will explain the current state of our Leasing of Real Estate business. The vacancy rate at the end of September was 4.1%, a 0.5 point improvement on the March rate of 4.6%. The overall vacancy rate is tending to improve as tenants continue to enter properties that were opened at the end of the previous fiscal year. If regional properties that opened at the end of the previous fiscal year are excluded, the vacancy rate for existing properties is 2.7%, a 0.5 deterioration from the March rate of 2.2%, This happened because there were cancellation notices in March but the tenants did not actually move out until September.
In our tenant operations since April, the floor space for new contracts has exceeded the floor space associated with cancellation notices, because we have been able to contain cancellations by making some price adjustments. This leads us to believe that so long as there are no dramatic changes in business confidence, the vacancy rate can be expected to improve between now and the end of the fiscal year.
Note that our vacancy rate is based on the actual number of tenants moving in and out.
Also, as you can see in the graph, TLC average office rent has fallen for the first time, down from a peak of ¥25,430 per tsubo per month at the end of June to ¥24,770 per tsubo per month at the end of September.
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