Tokyo prime office rents surge to record 18.2% in Q1 2026

Key wards report near-zero vacancy.

Tokyo’s Grade A office market continues to outperform, supported by solid economic growth and strong corporate earnings, with rents and occupancy tightening further in Q1 2026, according to Savills.

In its latest analysis, Savills reported that average Grade A rents across the C5W reached a new high of JPY40,815 per tsubo, rising 8.6% quarter-on-quarter and 18.2% year-on-year. All five wards recorded rental growth, with Chuo leading gains on both a quarterly and annual basis.

Vacancy levels remained exceptionally tight. The average Grade A vacancy rate across the C5W edged up slightly by 0.1 percentage points quarter-on-quarter but fell 1.2 percentage points year-on-year to just 0.5%. Chiyoda, Shibuya and Shinjuku are effectively at near-zero vacancy, underscoring sustained tenant demand across core submarkets.

Savills noted that Minato continues to see gradual vacancy compression, while Chuo experienced a temporary increase following the completion of the TOFROM YAESU TOWER, although much of the space was pre-leased.

Looking ahead, new supply in 2026 is expected to remain broadly consistent with 2025, concentrated in Nihonbashi & Yaesu and Takanawa. Major developments such as the Nihonbashi 1-Chome Central District Redevelopment Project, THE LINKPILLAR II, and TOFROM YAESU TOWER will account for more than half of total completions.

Supply is expected to decline in 2027 and 2028, which Savills said should support continued absorption and keep vacancy levels tight, reinforcing the market’s strong structural fundamentals.