Japan’s regional offices set for continued rental growth in 2026

Tight vacancies and pre-leasing momentum signal a strong year ahead. 

Japan’s regional office market continues to experience steady rental growth, with vacancy rates tightening across most cities, according to a recent report by Savills. Despite political uncertainty that could challenge the economy in the year ahead, strong corporate performance in 2025 has highlighted Japan’s resilience amid global headwinds.

Companies are increasingly prioritizing talent attraction and retention, with workplaces offering premium amenities and hybrid work capabilities positioned to command higher rents. Savills noted that offices equipped with flexible layouts, advanced meeting facilities, and employee-focused amenities are driving stronger tenant demand.

Ongoing development projects, however, continue to face delays or potential cancellations due to labor shortages and elevated construction and land costs. As a result, developers are adopting a more disciplined approach, limiting new supply in the near term. This constrained availability is boosting demand for existing offices and contributing to continued rental growth.

Looking ahead to 2026, Savills noted several markets are set to receive notable new supply, much of which has already attracted strong pre-leasing interest. The limited availability of large floor plates, particularly for major corporations seeking to relocate, is expected to maintain upward pressure on rents, giving landlords leverage to increase rates for incoming tenants.

Savills said these dynamics suggest Japan’s regional office markets remain resilient, with quality space and tenant-focused amenities increasingly driving market performance.