Tokyo Grade A office rents grow by 10.8% in Q3

Chuo saw the strongest rental growth.

The Tokyo Grade A office market has continued its growth streak due to steady demand, according to a recent report from Savills. Average rents in the C5W rose by 3.2% QoQ and 10.8% YoY to JPY36,882 per tsubo in Q3/2025.

“All five constituent wards enjoyed rental growth on both a quarterly and annual basis, demonstrating positive and sound market sentiment, with Chuo seeing the strongest increase over the quarter,” the report added.

Here’s more from Savills:

The average Grade A office vacancy rate across the C5W fell by 0.8ppts QoQ to 0.7%. Among the constituent wards, Shibuya and Chiyoda held the tightest vacancies, with availability nearly non-existent, reflecting strong tenant appetite. Minato and Chuo saw a notable improvement, while Shinjuku saw a slight uptick. Despite the improvement across most wards, the average vacancy remains slightly above prepandemic ultra-low levels.

New office supply in 2025 is expected to be higher than that of the previous year, driven by several major completions in Minato. Strong demand for modern office space has resulted in a large portion of the new supply being pre-leased. In addition, delays in some developments will help stagger the market’s new stock in the coming years, facilitating smoother absorption and stability among existing office properties.