Japan Office MarketView Q4 2025

Tokyo: Grade A rents exceed JPY 40,000 for first time in 17 years

In Q4 2025, the Tokyo All-Grade vacancy rate dropped by 0.5 pp. q-o-q to 1.6%. The Grade A vacancy rate slid by 0.3 pp. to 0.7%, falling below 1% for the first time since Q3 2020. During the quarter, significant vacancies were filled in large buildings located in both central and peripheral areas. Average rents once again recorded sharp increases across all grades, with Grade A rents spiking by 3.3% q-o-q to JPY 41,050, clearing the JPY 40,000 threshold for the first time since Q1 2009.

Osaka: Grade A joins All-Grade rents in hitting new record highs

Osaka’s All-Grade vacancy rate for Q4 2025 recorded a marginal decline of 0.1 pp. q-o-q to 2.2%. While the quarter’s new supply came on stream with some vacancies, several companies completed relocations to relatively new properties for new office openings or for upgrades and expansions aimed at securing and retaining staff. Grade A rents grew 3.7% q-o-q to JPY 26,950, surpassing the Q1 2020 level and setting a record high. All-Grade rents also set record highs for a second consecutive quarter.

Nagoya: Grade A vacancy rate drops to 0.7%, breaking 1% barrier for first time in six years

The All-Grade vacancy rate in Nagoya slipped by 0.1 pp. q-o-q to 2.3% this quarter. The Grade A vacancy rate dropped 0.4 pp. to 0.7%, falling below the 1% threshold for the first time since Q4 2019. Several relocations were observed in Q4 2025, particularly in the IT sector, by companies looking to expand or upgrade their offices. Continuing a trend set in the previous quarter, both Grade A and All-Grade rents once again reached record highs. Landlords are actively raising asking rents as vacancies become increasingly scarce.

Regional cities: Rents rise in all cities, with Fukuoka’s reaching record high

All-Grade vacancy rates for the quarter fell q-o-q in five of the 10 surveyed regional cities, remained unchanged in one, and rose in the remaining four. While vacancy rates rose on the back of new supply in some cities, demand remained robust nationwide as several companies relocated to existing buildings for the purpose of expansion or upgrading. All-Grade rents rose across all cities, with those in Fukuoka setting an all-time high. High-grade buildings in prime areas underpinned rent increases this quarter.