Grade A office vacancy stays near zero across Tokyo's core districts
Near-zero vacancy and broad rental growth signal resilient occupier demand, which may strengthen landlords' pricing power across Tokyo's core Grade A office districts.
Tokyo C5W Grade A office rents rose 2.5% quarter-on-quarter and 17.1% year-on-year to JPY41,847 per tsubo in Q2 2026, while vacancy was 0.6%.
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Rents continued to grow 2.5% in Q2.
Tokyo's Grade A office market extended its strong performance in Q2 2026, supported by healthy corporate earnings and resilient occupier demand, according to Savills.
Average Grade A office rents across Tokyo's five central wards (C5W) rose 2.5% quarter-on-quarter (QoQ) and 17.1% year-on-year (YoY) to JPY41,847 per tsubo. Savills said all five constituent wards recorded rental growth during the quarter, underscoring the strength of the prime office market. Shinjuku posted the strongest quarterly rental increase, while Chuo led annual rental growth.
The consultancy noted that the average Grade A office vacancy rate edged up by 0.1 percentage points (ppts) QoQ but tightened by 0.9 ppts YoY to just 0.6%. Chiyoda, Shibuya and Shinjuku continued to maintain near-zero vacancy levels, reflecting sustained tenant demand, while Chuo and Minato also posted notable improvements from a year ago despite comparatively higher vacancy rates.