- For the first time since 2020, average rents for both Grade A and large-scale Grade B offices have surpassed their previous peak levels, while vacancy has tightened to near pre-pandemic levels.
- Average Grade A office rents in the C5W strengthened by 8.6% quarter-on-quarter (QoQ) and 18.2% year-on-year (YoY) to JPY40,815 per tsubo per month.
- The average Grade A office vacancy rate in the C5W saw a slight uptick of 0.1 percentage points (ppts) QoQ but decreased by 1.2 ppts YoY to 0.5%.
- Average large-scale Grade B office rents grew by 7.9% QoQ and 19.0% YoY to JPY30,818 per tsubo per month.
- Vacancy rates in the large-scale Grade B office market tightened by 0.3ppts QoQ and 1.2ppts YoY to 0.8%.
- As effective vacancy in high-specification buildings across Tokyo's prime core districts falls to virtually zero, the Bay Area office market is becoming an increasingly attractive alternative.
- New supply in 2026 is forecast to be just below 2025 levels, with a majority of developments to be completed in the Nihonbashi & Yaesu and Takanawa submarkets.
Rents soar to new highs
Amid tight vacancies, landlords have continued to raise rents, pushing average office rents across the C5W above their previous 2020 peak.
Savills Research & Consultancy