Tokyo’s 2024 new office supply to be relatively moderate

The market is expected to stabilise further.

In contrast to 2023’s large new supply, a report by Savills revealed that the total new office supply in 2024 will be relatively moderate, which should usher further stability in the market. 

A handful of sizeable developments are in the pipeline this year, including Akasaka Trust Tower in the Toranomon & Roppongi submarket in 2024. 

Here’s more from Savills:

Elsewhere, the TODA Building in the Nihonbashi & Yaesu submarket is rumoured to be mostly pre-leased, SHIBUYA AXSH in Shibuya appears to be almost fully pre-leased, while the Shin-Tora Yasuda Building in Shibaura & Hamamatsucho is reportedly fully leased. 

Although the office market is still in a recovery phase, potential tenants have been actively consolidating offices and relocating to more desirable premises in order to support hiring efforts or new work styles. Modern offices have been the main beneficiaries of this trend, particularly those in prime locations. As such, even sizeable additions in 2024 should face few issues being absorbed, and have minimal impact on the stability of the market.