Key facts
- Average asking rents for office space in central Tokyo reached a new 31-year high in July.
- Vacancy rates declined in five of ten key Japanese cities in Q3 2025.
- Tokyo's all-grade vacancy rate dropped to 2.1%, with Grade A vacancies at 1.0%.
- Grade A rents in Tokyo rose 3.4% to approximately $1,075 per tsubo, the highest since 2007.
- Osaka and Nagoya also reported record highs for office rents.
Average asking rents for office space in central Tokyo reached a new 31-year high in July, driven by sustained strong demand from companies relocating and expanding their offices, according to CBRE.
In the third quarter of 2025, vacancies declined in five of Japan's ten major cities, with Tokyo's all-grade vacancy rate falling to 2.1% and Grade A vacancies dropping to just 1.0%. This tightening market has given property owners significant pricing power.
Grade A rents in Tokyo saw a 3.4% quarter-over-quarter increase, reaching approximately $1,075 per tsubo. This marks the highest level since 2007 and surpasses pre-pandemic peaks. Osaka and Nagoya also reported record highs for office rents, with Osaka's all-grade rents hitting $400 per tsubo and Nagoya's Grade A rents reaching $765 per tsubo.
The report highlights the resilience of Japan's office sector, with steady tenant demand, limited speculative construction, and continued expansion activity contributing to the market's stability. While new supply may cause temporary fluctuations in some secondary markets, fundamentals in Tokyo and other major metropolitan hubs are expected to remain robust heading into 2026.