Tokyo large-scale grade B office rents surpass 2020 peak

Rents rose nearly 20% year on year in Q1.

Tokyo’s large-scale Grade B office market continued to strengthen in Q1 2026, recording rental growth broadly in line with the Grade A segment and surpassing its previous 2020 peak, according to Savills.

In its latest market update, Savills reported that average rents for large-scale Grade B offices rose 7.9% quarter-on-quarter and 19.0% year-on-year to JPY30,818 per tsubo, comfortably exceeding the prior peak seen in Q2 2020.

Minato led quarterly growth with a 12.4% increase, while all other wards recorded gains between 5.0% and 8.8%, reflecting broad-based rental momentum across the market.

Vacancy levels also tightened further. Average large-scale Grade B vacancy fell to 0.8%, down 0.3 percentage points quarter-on-quarter and 1.2 percentage points year-on-year. Chuo posted the strongest quarterly improvement, while other wards recorded declines of between 0.1 and 0.4 percentage points.

Savills noted that limited availability in the Grade A segment has helped drive demand toward Grade B stock, supporting stronger-than-expected rental growth and allowing the segment to outperform Grade A offices in annual percentage terms.

Looking ahead, ongoing pre-leasing activity and a moderate development pipeline over the next two years are expected to keep supply-demand conditions tight, supporting continued rental growth across Tokyo’s large-scale Grade B office market.