#Japan #Tokyo #small_offices #rental_prices #Athome_Inc

Recent Trends in Rental Prices for Small Offices in Japan

As we dive into the data provided by Athome Inc., a real estate information service headquartered in Ota City, Tokyo, the landscape for small offices in Japan reveals some promising trends for the first half of 2025. The analysis, conducted by Athome Lab, focuses on small office spaces of 50 tsubo (approximately 165 square meters) or less, which play a crucial role in the commercial real estate market. Let's explore the findings in detail.

Tokyo's Small Office Rental Prices

In Tokyo, the rental prices for small offices, categorized by size, have shown a slight yet notable uptick. Specifically, the Ultra Small Offices (5 to 25 tsubo) have reached an average rent of 14,321 yen per tsubo, representing a 3.5% increase from the previous period. Meanwhile, the Small Offices (25 to 50 tsubo) have an average rental price of 16,013 yen per tsubo, which is an increase of 1.2% over the same timeframe.

This marks a continuous rise in rental prices for ultra-small offices for the sixth consecutive period, indicating a steady demand for compact office spaces that cater to startups and small businesses.

Regional Highlights

Diving deeper into the statistics by region, the ultra-small offices have achieved peak prices in 15 areas, while small offices reached their highest levels in 10 areas since the second half of 2012. This growth is particularly significant given the economic challenges that many businesses have faced in recent years.

Rental Trends in Other Major Cities

Beyond Tokyo, other major cities are experiencing similar trends in rental prices. For instance, in Sendai and Nagoya, the average rents for ultra-small offices also saw an increase compared to the previous period, with Nagoya surpassing its highest price levels since the latter part of 2012.

Small office spaces in both Yokohama and Nagoya similarly reflect a strong demand, with rental prices hitting their highest points since late 2012. These trends suggest that businesses are increasingly seeking out small office spaces, potentially as a strategy to reduce overhead costs while maintaining a presence in major urban centers.

Study Overview

This study covers key areas in Japan, including:

• - Tokyo: 21 specific regions
• - Other Major Areas: Sendai City in Miyagi Prefecture, Yokohama City in Kanagawa Prefecture, Nagoya City in Aichi Prefecture, Osaka City in Osaka Prefecture, and Fukuoka City in Fukuoka Prefecture.

The data highlighted focuses on rental prices for registered offices that are available for lease (excluding entire buildings and rental storefronts) and emphasizes properties located within a 10-minute walk from transportation hubs. The rental prices consider the average cost per tsubo, including common service fees, and median values across each area are presented.

In summary, the results of this research indicate a robust interest in small office leases, showcasing a growing segment of the market that meets the needs of diverse businesses in bustling urban settings. For more detailed insights and data, please refer to the official report.