#Japan #Tokyo #Tokyo Office #Mitsubishi Estate #Real Estate Service

Overview of Tokyo Office Market at End of 2025

As we approach the end of 2025, the Tokyo office market shows some intriguing trends based on the latest analysis conducted by Mitsubishi Estate Real Estate Service. This detailed report focuses on vacancy rates, average rent levels, and other significant trends across various districts in Tokyo.

Vacancy Rates

At the close of December 2025, the overall vacancy rate for the Tokyo office market stood at 2.31%, slightly decreased by 0.01 percentage points from the previous month. When breaking it down by district:

• - The primary five districts recorded a vacancy rate of 1.92%, reflecting an increase of 0.07 percentage points.
• - The top seven districts maintained a vacancy rate of 2.31%.

These figures suggest a fairly stable demand amidst fluctuating supply levels.

Average Rent Levels

The average rent in key districts also saw notable changes:

• - The average rent in the primary five districts was 32,306 yen per tsubo, having risen by 676 yen per tsubo compared to the previous month.
• - For the primary seven districts, the average rent was 27,944 yen per tsubo, an increase of 867 yen per tsubo.

The consistent upward movement in average rent indicates a growing demand for office spaces in Tokyo, particularly in central areas.

District-Wise Developments

Examining specific areas within Tokyo reveals significant insights:

• - In the Kitashinagawa vicinity, certain properties experienced a staggering rent increase of 5,000 yen per tsubo, contributing to the escalation of average rents in the Osaki station area, which reached 27,535 yen per tsubo (+2,753 yen per tsubo).
• - Conversely, the Toyosu and Harumi areas observed a promising decline in potential vacancy rates, now at 5.93%, dropping by 1.61 percentage points from the previous month. This marks a critical milestone, being the first time since September 2020 that vacancy rates fell below 6%.

Inventory Analysis by Floor Size

The inventory status of available office spaces presents an important aspect of the market dynamics:

• - Approximately 65% of available stock consists of medium-sized units ranging from 100 to 500 tsubo.
• - Interestingly, about half of the larger units over 500 tsubo are concentrated in Koto Ward, while Shibuya Ward faces a scarcity of units exceeding 500 tsubo.
• - This scarcity is further emphasized by the increasing demand for office space, notably causing a reduction in available units within central areas.

Data Sources & Methodology

This analysis is based on a comprehensive survey of 988 buildings as of the end of December 2025, indicating an addition of one building compared to the previous month. The surveyed buildings encompass those registered in our database and completed tenant buildings of 3,000 tsubo or more in the central districts (Chiyoda, Chuo, Minato, Shinjuku, Shibuya, Shinagawa, Koto).

Utilizing sophisticated market definitions and detailed insights, we have redefined traditional vacancy metrics to focus on potential availability, thereby establishing a new benchmark for assessing market supply. This includes calculating vacancy rates only from spaces ready for immediate occupancy.

Conclusion

The Tokyo office market at the end of 2025 exhibits resilience, with low vacancy rates and rising average rents highlighting a strong demand for office spaces. Mitsubishi Estate Real Estate Service continues to leverage its extensive network and analytical expertise to provide relevant insights into the ever-evolving real estate landscape.

For further details, you can access comprehensive reports and insights on our property rental site, giving prospective renters a clear understanding of the current office market conditions in Tokyo.

• ---

Mitsubishi Estate Real Estate Service Company Overview

Founded in December 1972, Mitsubishi Estate Real Estate Service operates as a leading company in the real estate sector, specializing in brokerage, consulting, appraisal, and leasing services. Leveraging years of accumulated knowledge and the Mitsubishi Estate Group's extensive network, we aim to meet diverse customer needs effectively.