Tokyo large-scale Grade B offices record 2.0% rental growth in Q2
Near-full occupancy and broad rental growth signal sustained tenant competition for limited space, which may preserve landlords’ pricing power across major submarkets.
Tokyo large-scale Grade B office rents rose 2.0% quarter-on-quarter and 17.7% year-on-year to JPY31,435 per tsubo in Q2 2026, while vacancy was 0.9%.
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Meanwhile, vacancy remains below 1%.
Tokyo's large-scale Grade B office market remained on a firm footing in Q2 2026, with rents and occupancy continuing to improve, according to Savills.
Average rents increased 2.0% QoQ and 17.7% YoY to JPY31,435 per tsubo. Shibuya recorded the strongest quarterly rental growth at 2.4%, followed by Shinjuku (2.3%) and Chuo (2.2%). Chiyoda's rents rose 1.7% over the quarter but posted annual growth of 20.9%, while Minato recorded the strongest yearly increase of 21.9% despite the smallest quarterly gain of 1.4%.
Savills said the average vacancy rate increased marginally by 0.1 ppts QoQ but declined by 0.5 ppts YoY to 0.9%. Shibuya posted the biggest quarterly improvement, with vacancy falling 0.2 ppts, while Minato improved by 0.1 ppts. Chiyoda maintained near-zero vacancy, Chuo recorded the largest annual tightening of 1.3 ppts, and Shinjuku's vacancy rose 0.7 ppts over the quarter but remained 0.5 ppts lower than a year earlier.