#Japan #Tokyo #Tokyo Office #Mitsubishi Estate #JULY 2026

Tokyo Office Market Update for July 2026

As of the end of July 2026, Mitsubishi Estate Real Estate Services has released its market report on Tokyo's office space vacancy rates and average rental prices. The data indicates a minor shift in both the potential vacancy rates and the listed rental prices in key districts, responding to an evolving demand among businesses.

Current Vacancy Rates

The potential vacancy rate across the major seven districts in Tokyo now stands at 2.28%, reflecting a slight decrease of 0.05 percentage points compared to the previous month. In the major five districts, this figure is even lower at 1.86%, having decreased by 0.14 percentage points. These figures signify a relatively stable market environment, suggesting that demand is on the rise while available office space is tightening.

Average Rental Prices

In terms of average rental prices, the major seven districts are recording an average of ¥32,828 per tsubo (approximately 3.3 square meters). This reflects a drop of ¥247 per tsubo from the previous month. Meanwhile, the five major districts show a slightly higher average rental price of ¥37,892 per tsubo, albeit a marginal drop of ¥6 per tsubo compared to the prior assessment.

Key District Analysis

In Chiyoda Ward, there has been a significant improvement in the availability of properties listed below ¥50,000 per tsubo, as many businesses with relocation plans find these options more viable. As a result, the average rental price in this area has surged by ¥1,262 per tsubo, reaching a total of ¥45,296 per tsubo. This growth indicates a revitalization in demand within this prestigious ward.

Conversely, Minato Ward has shown a decrease in potential vacancy rates across all sub-markets. The decline is attributed to the absorption of high-end properties priced above ¥40,000 per tsubo, causing the average rental price to drop by ¥827 per tsubo, landing at ¥33,744 per tsubo. This tactical shift suggests that while the high-end market is currently experiencing a slowdown, it is gradually recovering.

Changes in Rental Price Levels

An analysis of rental price trends using a box plot has revealed a general increase in both the average and median rental prices across various sub-markets. Notably, an increasing number of areas are exhibiting a rise in maximum price levels. Particularly in Chiyoda and Chuo Wards, the decrease in vacancy rates is noteworthy, as exceptionally priced properties remain steadfast in their appeal. The uptick in rental prices for these outlier properties over the past year indicates a broader trend influencing average prices, suggesting that both outlier properties and upper thresholds are contributing factors to the rising average rental values.

Market Survey Details

This report covers 996 buildings (with an increase of 2 buildings from the prior month) and is based on properties exceeding 3,000 tsubo in area, located within Chiyoda, Chuo, Minato, Shinjuku, Shibuya, Shinagawa, and Koto Wards. Special circumstances on certain properties have been taken into account to ensure accurate data representation.

Conclusion

Overall, this latest market analysis sheds light on the dynamic nature of Tokyo's office rental market as of July 2026. With strategic approaches adopted by companies navigating their options for real estate, the interplay between demand and availability continues to shape the landscape. As Mitsubishi Estate Real Estate Services continues to monitor these trends, businesses can expect tailored insights that help in making informed decisions regarding office leasing in Tokyo.

For further details on the office rental market, please visit the Mitsubishi Estate Real Estate Services' website: Mitsubishi Estate Office Search.