#Japan #Tokyo #Office Rent Index #Sankou Estate

Tokyo Office Rent Index Q2 2026 Overview

On July 31, 2026, Sankou Estate Co., Ltd., headquartered in Chuo-ku, Tokyo, in collaboration with the NLI Research Institute, unveiled the Office Rent Index based on signed rental agreements. This index offers valuable insights into the current trends of the office rental market in Tokyo's metropolitan area for the second quarter of 2026.

A-Class Buildings

In the core area of Tokyo, the average rent for A-class buildings increased by 639 yen per tsubo, bringing the total to 38,259 yen per tsubo (excluding common service fees). This marks the 11th consecutive quarter of increases and indicates a strong upward trend in rental prices, recovering to levels last seen in Q3 2020. The year-on-year change shows a consistent positive movement for nine consecutive quarters.

The vacancy rate, meanwhile, has dipped to 0.8%, down 0.1 percentage points from the previous quarter, showcasing an impressive demand for new and recently constructed buildings. Currently, there are no new supplies scheduled for Q2 2026, creating a sense of scarcity amidst ongoing discussions about leasing. However, the potential economic slowdown due to prolonged conflicts in the Middle East remains a concern, despite the active demand for office spaces.

B-Class Buildings

For B-class buildings in the same core area, average rents encountered a slight decline, dropping by 91 yen to 22,804 yen per tsubo (excluding common service fees). Despite this minor decrease, property owners maintain a strong stance, actively seeking to increase rental conditions for both new and extended leases. This demonstrates a resilient trend that has shown positive year-on-year fluctuations for 11 consecutive quarters since Q1 2023, which has been the bottom point for rentals.

The vacancy rate for B-class buildings has remained stable at 1.4%. Even with new constructions adding to vacancy levels, older buildings are experiencing absorption from tenants, resulting in a limited selection of available properties. Additionally, rising oil prices and constraints on supply stemming from negative geopolitical developments have led to increased costs for pre-move renovations and restorations, complicating the decision-making process for tenants.

C-Class Buildings

In the C-class category, rents saw an increment of 483 yen, reaching 20,475 yen per tsubo (excluding common service fees), thus recovering to a level not seen since pre-COVID in Q1 2020. This marks the seventh consecutive quarter of increases, indicative of a gentle upward trend in rental rates.

The vacancy rate hovered at 1.8%, signaling a low level of available spaces. Despite new constructions introducing some vacancies, there has been significant absorption in city-centered locations. The growing demand for well-located buildings adds to the sense of scarcity. In response to tightening supply-demand dynamics, property owners are adjusting their leasing terms upward. The recent low point for vacancy rates in C-class buildings was recorded at 0.6% during Q1 2020, although a further decline seems less likely currently.

Year-on-Year Changes

Comparing to Q2 2025, the year-on-year changes were notable: A-class buildings saw an increase of 25.2%, B-class buildings rose by 2.3%, and C-class buildings experienced a 7.5% increase. A-class buildings have notably maintained a vigorous growth trajectory with over 20% increases for four consecutive quarters.

About Sankou Estate Co., Ltd.

Founded on May 17, 1977, Sankou Estate Co., Ltd. provides comprehensive support for corporate office strategies. Their services range from assisting in the selection and brokerage of rental office buildings to verifying and proposing optimal workspaces, including essential management functions for project execution. Sankou Estate ensures that all needs related to office spaces are promptly addressed, improving overall corporate productivity.

For more details, please visit Sankou Estate's official website.