Japan Grade A office vacancy nears historic lows

Vacancy in Tokyo declined to 1.3% in H1.

Japan's Grade A office markets tightened further in the first half of 2026, with intense competition for talent driving a nationwide flight to quality, according to Colliers' latest office market insights.

Vacancy reached near-historic lows in Tokyo and Osaka, at 1.3% and 2.5%, respectively. Strong demand for high-quality workplaces is supporting rental growth in both markets as employers compete for talent.

Colliers said rising fit-out costs and longer construction lead times are also extending relocation timelines for occupiers, further limiting their options.

Tokyo remains the tighter market. Although a substantial pipeline of new supply is due, much of the space has already been pre-committed well ahead of completion. As a result, backfill space created by recent relocations is more likely to provide any near-term increase in availability.

Osaka is also tightening, albeit from a higher vacancy base. With little backfill space expected and few new completions ahead, Colliers said occupier options are narrowing rather than widening.

The market dynamics point to continued pressure on Grade A availability as businesses prioritise high-quality offices to attract and retain talent.