Limited new supply to keep Tokyo office market tight through 2027: analyst

Savills sees continued rental growth and landlord-favourable conditions in the market.

Tokyo's office market is expected to remain resilient through 2027 as limited new supply and strong tenant demand continue to support rental growth, according to Savills.

The consultancy said both Grade A and large-scale Grade B office markets recorded robust rental growth in Q2 2026, while vacancy levels are expected to remain tight as major office developments scheduled for completion this year continue to achieve strong pre-leasing rates.

Savills noted that constrained availability of large, high-quality office space has prompted some occupiers to expand within existing buildings or establish satellite offices instead of relocating, reflecting the limited supply of premium office space.

Looking ahead, new office completions in 2027 are forecast to fall to just under half of 2026 levels. Savills expects the reduced pipeline to keep market conditions tight, supporting further rental growth and sustaining landlord-favourable leasing conditions across Tokyo's core office districts.